Correlation Between TITANIUM TRANSPORTGROUP and China Eastern
Can any of the company-specific risk be diversified away by investing in both TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP and China Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TITANIUM TRANSPORTGROUP and China Eastern Airlines, you can compare the effects of market volatilities on TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of TITANIUM TRANSPORTGROUP and China Eastern.
Diversification Opportunities for TITANIUM TRANSPORTGROUP and China Eastern
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TITANIUM and China is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP i.e., TITANIUM TRANSPORTGROUP and China Eastern go up and down completely randomly.
Pair Corralation between TITANIUM TRANSPORTGROUP and China Eastern
Assuming the 90 days horizon TITANIUM TRANSPORTGROUP is expected to generate 0.41 times more return on investment than China Eastern. However, TITANIUM TRANSPORTGROUP is 2.43 times less risky than China Eastern. It trades about 0.15 of its potential returns per unit of risk. China Eastern Airlines is currently generating about 0.01 per unit of risk. If you would invest 150.00 in TITANIUM TRANSPORTGROUP on October 26, 2024 and sell it today you would earn a total of 5.00 from holding TITANIUM TRANSPORTGROUP or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TITANIUM TRANSPORTGROUP vs. China Eastern Airlines
Performance |
| Timeline |
| TITANIUM TRANSPORTGROUP |
| China Eastern Airlines |
TITANIUM TRANSPORTGROUP and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TITANIUM TRANSPORTGROUP and China Eastern
The main advantage of trading using opposite TITANIUM TRANSPORTGROUP and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TITANIUM TRANSPORTGROUP 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.| TITANIUM TRANSPORTGROUP vs. NIKKON HOLDINGS TD | TITANIUM TRANSPORTGROUP vs. SENKO GROUP HOLDINGS | TITANIUM TRANSPORTGROUP vs. NTG Nordic Transport | TITANIUM TRANSPORTGROUP vs. SINGAPORE POST |
| China Eastern vs. Autohome ADR | China Eastern vs. FLOW TRADERS LTD | China Eastern vs. OFFICE DEPOT | China Eastern vs. Haverty Furniture Companies |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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