Correlation Between Shanghai Bailian and Eastern Air
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By analyzing existing cross correlation between Shanghai Bailian Group and Eastern Air Logistics, you can compare the effects of market volatilities on Shanghai Bailian 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 Shanghai Bailian with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Bailian and Eastern Air.
Diversification Opportunities for Shanghai Bailian and Eastern Air
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Eastern is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Bailian Group 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 Shanghai Bailian 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 Shanghai Bailian Group 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 Shanghai Bailian i.e., Shanghai Bailian and Eastern Air go up and down completely randomly.
Pair Corralation between Shanghai Bailian and Eastern Air
Assuming the 90 days trading horizon Shanghai Bailian Group is expected to generate 1.04 times more return on investment than Eastern Air. However, Shanghai Bailian is 1.04 times more volatile than Eastern Air Logistics. It trades about 0.19 of its potential returns per unit of risk. Eastern Air Logistics is currently generating about -0.05 per unit of risk. If you would invest 40.00 in Shanghai Bailian Group on September 3, 2024 and sell it today you would earn a total of 31.00 from holding Shanghai Bailian Group or generate 77.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Bailian Group vs. Eastern Air Logistics
Performance |
| Timeline |
| Shanghai Bailian |
| Eastern Air Logistics |
Shanghai Bailian and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Bailian and Eastern Air
The main advantage of trading using opposite Shanghai Bailian and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Bailian 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.| Shanghai Bailian vs. Inspur Software Co | Shanghai Bailian vs. Iat Automobile Technology | Shanghai Bailian vs. Zotye Automobile Co | Shanghai Bailian vs. Caihong Display Devices |
| Eastern Air vs. Fiberhome Telecommunication Technologies | Eastern Air vs. Ningbo Tech Bank Co | Eastern Air vs. Unisplendour Corp | Eastern Air vs. China Construction Bank |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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