Correlation Between Eastern Air and Datang Telecom
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By analyzing existing cross correlation between Eastern Air Logistics and Datang Telecom Technology, you can compare the effects of market volatilities on Eastern Air and Datang Telecom 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 Eastern Air with a short position of Datang Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Datang Telecom.
Diversification Opportunities for Eastern Air and Datang Telecom
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eastern and Datang is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Datang Telecom Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang Telecom Technology and Eastern Air 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 Eastern Air Logistics are associated (or correlated) with Datang Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang Telecom Technology has no effect on the direction of Eastern Air i.e., Eastern Air and Datang Telecom go up and down completely randomly.
Pair Corralation between Eastern Air and Datang Telecom
Assuming the 90 days trading horizon Eastern Air Logistics is expected to generate 1.21 times more return on investment than Datang Telecom. However, Eastern Air is 1.21 times more volatile than Datang Telecom Technology. It trades about 0.21 of its potential returns per unit of risk. Datang Telecom Technology is currently generating about 0.07 per unit of risk. If you would invest 1,046 in Eastern Air Logistics on April 25, 2025 and sell it today you would earn a total of 360.00 from holding Eastern Air Logistics or generate 34.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Eastern Air Logistics vs. Datang Telecom Technology
Performance |
Timeline |
Eastern Air Logistics |
Datang Telecom Technology |
Eastern Air and Datang Telecom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastern Air and Datang Telecom
The main advantage of trading using opposite Eastern Air and Datang Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Datang Telecom 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 Datang Telecom will offset losses from the drop in Datang Telecom's long position.Eastern Air vs. MayAir Technology Co | Eastern Air vs. Anhui Deli Household | Eastern Air vs. Beijing Baolande Software | Eastern Air vs. Bingo Software Co |
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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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