Correlation Between Tianjin Silvery and China Eastern
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By analyzing existing cross correlation between Tianjin Silvery Dragon and China Eastern Airlines, you can compare the effects of market volatilities on Tianjin Silvery and China Eastern 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 Tianjin Silvery with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and China Eastern.
Diversification Opportunities for Tianjin Silvery and China Eastern
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and China is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines and Tianjin Silvery 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 Tianjin Silvery Dragon are associated (or correlated) with China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and China Eastern go up and down completely randomly.
Pair Corralation between Tianjin Silvery and China Eastern
Assuming the 90 days trading horizon Tianjin Silvery is expected to generate 1.02 times less return on investment than China Eastern. In addition to that, Tianjin Silvery is 2.21 times more volatile than China Eastern Airlines. It trades about 0.11 of its total potential returns per unit of risk. China Eastern Airlines is currently generating about 0.25 per unit of volatility. If you would invest 384.00 in China Eastern Airlines on September 2, 2024 and sell it today you would earn a total of 24.00 from holding China Eastern Airlines or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. China Eastern Airlines
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| China Eastern Airlines |
Tianjin Silvery and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and China Eastern
The main advantage of trading using opposite Tianjin Silvery and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| Tianjin Silvery vs. Zijin Mining Group | Tianjin Silvery vs. Wanhua Chemical Group | Tianjin Silvery vs. Baoshan Iron Steel | Tianjin Silvery vs. Shandong Gold Mining |
| China Eastern vs. Weihai Honglin Electronic | China Eastern vs. Penyao Environmental Protection | China Eastern vs. Sinosteel Engineering and | China Eastern vs. Beijing SPC Environment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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