Correlation Between 24SEVENOFFICE GROUP and China Eastern
Can any of the company-specific risk be diversified away by investing in both 24SEVENOFFICE GROUP and China Eastern at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 24SEVENOFFICE GROUP and China Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 24SEVENOFFICE GROUP AB and China Eastern Airlines, you can compare the effects of market volatilities on 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SEVENOFFICE GROUP and China Eastern.
Diversification Opportunities for 24SEVENOFFICE GROUP and China Eastern
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 24SEVENOFFICE and China is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding 24SEVENOFFICE GROUP AB 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 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP AB 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 24SEVENOFFICE GROUP i.e., 24SEVENOFFICE GROUP and China Eastern go up and down completely randomly.
Pair Corralation between 24SEVENOFFICE GROUP and China Eastern
Assuming the 90 days horizon 24SEVENOFFICE GROUP AB is expected to under-perform the China Eastern. In addition to that, 24SEVENOFFICE GROUP is 2.17 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 0.01 per unit of volatility. If you would invest 31.00 in China Eastern Airlines on October 28, 2024 and sell it today you would earn a total of 0.00 from holding China Eastern Airlines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
24SEVENOFFICE GROUP AB vs. China Eastern Airlines
Performance |
| Timeline |
| 24SEVENOFFICE GROUP |
| China Eastern Airlines |
24SEVENOFFICE GROUP and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 24SEVENOFFICE GROUP and China Eastern
The main advantage of trading using opposite 24SEVENOFFICE GROUP and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SEVENOFFICE GROUP 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.| 24SEVENOFFICE GROUP vs. Uber Technologies | 24SEVENOFFICE GROUP vs. PagerDuty | 24SEVENOFFICE GROUP vs. Rocket Internet SE | 24SEVENOFFICE GROUP vs. Fastly Inc |
| China Eastern vs. Delta Air Lines | China Eastern vs. Air China Limited | China Eastern vs. AIR CHINA LTD | China Eastern vs. RYANAIR HLDGS ADR |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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