Correlation Between Anhui Transport and Eastern Air
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By analyzing existing cross correlation between Anhui Transport Consulting and Eastern Air Logistics, you can compare the effects of market volatilities on Anhui Transport and Eastern Air and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Anhui Transport with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Eastern Air.
Diversification Opportunities for Anhui Transport and Eastern Air
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Eastern is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Eastern Air Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Air Logistics and Anhui Transport is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Anhui Transport Consulting are associated (or correlated) with Eastern Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Air Logistics has no effect on the direction of Anhui Transport i.e., Anhui Transport and Eastern Air go up and down completely randomly.
Pair Corralation between Anhui Transport and Eastern Air
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to under-perform the Eastern Air. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Transport Consulting is 2.35 times less risky than Eastern Air. The stock trades about -0.23 of its potential returns per unit of risk. The Eastern Air Logistics is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,683 in Eastern Air Logistics on October 30, 2024 and sell it today you would lose (44.00) from holding Eastern Air Logistics or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Eastern Air Logistics
Performance |
| Timeline |
| Anhui Transport Cons |
| Eastern Air Logistics |
Anhui Transport and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Eastern Air
The main advantage of trading using opposite Anhui Transport and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Eastern Air can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eastern Air will offset losses from the drop in Eastern Air's long position.| Anhui Transport vs. Nanjing OLO Home | Anhui Transport vs. Zoy Home Furnishing | Anhui Transport vs. Fiberhome Telecommunication Technologies | Anhui Transport vs. Jiangsu Yanghe Brewery |
| Eastern Air vs. Everjoy Health Group | Eastern Air vs. Humanwell Healthcare Group | Eastern Air vs. Sanbo Hospital Management | Eastern Air vs. Harvest Fund Management |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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