Correlation Between Fernhill Beverage and China Eastern
Can any of the company-specific risk be diversified away by investing in both Fernhill Beverage 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 Fernhill Beverage and China Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fernhill Beverage and China Eastern Airlines, you can compare the effects of market volatilities on Fernhill Beverage 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 Fernhill Beverage with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fernhill Beverage and China Eastern.
Diversification Opportunities for Fernhill Beverage and China Eastern
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fernhill and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fernhill Beverage 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 Fernhill Beverage 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 Fernhill Beverage 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 Fernhill Beverage i.e., Fernhill Beverage and China Eastern go up and down completely randomly.
Pair Corralation between Fernhill Beverage and China Eastern
If you would invest 1,998 in China Eastern Airlines on September 12, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.3% |
| Values | Daily Returns |
Fernhill Beverage vs. China Eastern Airlines
Performance |
| Timeline |
| Fernhill Beverage |
| China Eastern Airlines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fernhill Beverage and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fernhill Beverage and China Eastern
The main advantage of trading using opposite Fernhill Beverage and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fernhill Beverage 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.| Fernhill Beverage vs. National Beverage Corp | Fernhill Beverage vs. Celsius Holdings | Fernhill Beverage vs. Monster Beverage Corp | Fernhill Beverage vs. Coca Cola Femsa SAB |
| China Eastern vs. Boot Barn Holdings | China Eastern vs. Citi Trends | China Eastern vs. Diamond Estates Wines | China Eastern vs. National Beverage Corp |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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