Correlation Between Der International and China Express
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By analyzing existing cross correlation between Der International Home and China Express Airlines, you can compare the effects of market volatilities on Der International and China Express 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 Der International with a short position of China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and China Express.
Diversification Opportunities for Der International and China Express
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Der and China is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines and Der International 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 Der International Home are associated (or correlated) with China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of Der International i.e., Der International and China Express go up and down completely randomly.
Pair Corralation between Der International and China Express
Assuming the 90 days trading horizon Der International Home is expected to under-perform the China Express. In addition to that, Der International is 2.34 times more volatile than China Express Airlines. It trades about -0.06 of its total potential returns per unit of risk. China Express Airlines is currently generating about -0.04 per unit of volatility. If you would invest 820.00 in China Express Airlines on October 1, 2024 and sell it today you would lose (17.00) from holding China Express Airlines or give up 2.07% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Der International Home vs. China Express Airlines
Performance |
Timeline |
Der International Home |
China Express Airlines |
Der International and China Express Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Der International and China Express
The main advantage of trading using opposite Der International and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International position performs unexpectedly, China Express 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 Express will offset losses from the drop in China Express' long position.Der International vs. Kweichow Moutai Co | Der International vs. Contemporary Amperex Technology | Der International vs. G bits Network Technology | Der International vs. BYD Co Ltd |
China Express vs. Industrial and Commercial | China Express vs. Agricultural Bank of | China Express vs. China Construction Bank | China Express vs. Bank of China |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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