Correlation Between Eva Airways and Eastern Media
Can any of the company-specific risk be diversified away by investing in both Eva Airways and Eastern Media 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 Eva Airways and Eastern Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eva Airways Corp and Eastern Media International, you can compare the effects of market volatilities on Eva Airways and Eastern Media 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 Eva Airways with a short position of Eastern Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eva Airways and Eastern Media.
Diversification Opportunities for Eva Airways and Eastern Media
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eva and Eastern is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Eva Airways Corp and Eastern Media International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Media Intern and Eva Airways 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 Eva Airways Corp are associated (or correlated) with Eastern Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Media Intern has no effect on the direction of Eva Airways i.e., Eva Airways and Eastern Media go up and down completely randomly.
Pair Corralation between Eva Airways and Eastern Media
Assuming the 90 days trading horizon Eva Airways Corp is expected to generate 2.66 times more return on investment than Eastern Media. However, Eva Airways is 2.66 times more volatile than Eastern Media International. It trades about 0.3 of its potential returns per unit of risk. Eastern Media International is currently generating about -0.76 per unit of risk. If you would invest 4,015 in Eva Airways Corp on September 26, 2024 and sell it today you would earn a total of 590.00 from holding Eva Airways Corp or generate 14.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 95.65% |
Values | Daily Returns |
Eva Airways Corp vs. Eastern Media International
Performance |
Timeline |
Eva Airways Corp |
Eastern Media Intern |
Eva Airways and Eastern Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eva Airways and Eastern Media
The main advantage of trading using opposite Eva Airways and Eastern Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eva Airways position performs unexpectedly, Eastern Media 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 Media will offset losses from the drop in Eastern Media's long position.Eva Airways vs. Yang Ming Marine | Eva Airways vs. Evergreen Marine Corp | Eva Airways vs. U Ming Marine Transport |
Eastern Media vs. Yang Ming Marine | Eastern Media vs. Evergreen Marine Corp | Eastern Media vs. Eva Airways Corp | Eastern Media vs. U Ming Marine Transport |
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.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |