Correlation Between China Eastern and ACHETER LOUER
Can any of the company-specific risk be diversified away by investing in both China Eastern and ACHETER LOUER 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 China Eastern and ACHETER LOUER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Eastern Airlines and ACHETER LOUER EO 145612, you can compare the effects of market volatilities on China Eastern and ACHETER LOUER 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 China Eastern with a short position of ACHETER LOUER. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and ACHETER LOUER.
Diversification Opportunities for China Eastern and ACHETER LOUER
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and ACHETER is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and ACHETER LOUER EO 145612 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACHETER LOUER EO and China Eastern 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 China Eastern Airlines are associated (or correlated) with ACHETER LOUER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACHETER LOUER EO has no effect on the direction of China Eastern i.e., China Eastern and ACHETER LOUER go up and down completely randomly.
Pair Corralation between China Eastern and ACHETER LOUER
Assuming the 90 days trading horizon China Eastern Airlines is expected to generate 0.15 times more return on investment than ACHETER LOUER. However, China Eastern Airlines is 6.88 times less risky than ACHETER LOUER. It trades about -0.04 of its potential returns per unit of risk. ACHETER LOUER EO 145612 is currently generating about -0.21 per unit of risk. If you would invest 30.00 in China Eastern Airlines on November 1, 2024 and sell it today you would lose (1.00) from holding China Eastern Airlines or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Eastern Airlines vs. ACHETER LOUER EO 145612
Performance |
| Timeline |
| China Eastern Airlines |
| ACHETER LOUER EO |
China Eastern and ACHETER LOUER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and ACHETER LOUER
The main advantage of trading using opposite China Eastern and ACHETER LOUER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern position performs unexpectedly, ACHETER LOUER 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 ACHETER LOUER will offset losses from the drop in ACHETER LOUER's long position.| China Eastern vs. Fast Retailing Co | China Eastern vs. Yanzhou Coal Mining | China Eastern vs. The Trade Desk | China Eastern vs. MINCO SILVER |
| ACHETER LOUER vs. High Liner Foods | ACHETER LOUER vs. China Eastern Airlines | ACHETER LOUER vs. American Airlines Group | ACHETER LOUER vs. SENECA FOODS A |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |