Correlation Between Avianca Holdings and China Eastern
Can any of the company-specific risk be diversified away by investing in both Avianca Holdings 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 Avianca Holdings and China Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avianca Holdings SA and China Eastern Airlines, you can compare the effects of market volatilities on Avianca Holdings 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 Avianca Holdings with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avianca Holdings and China Eastern.
Diversification Opportunities for Avianca Holdings and China Eastern
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Avianca and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Avianca Holdings SA 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 Avianca Holdings 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 Avianca Holdings SA 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 Avianca Holdings i.e., Avianca Holdings and China Eastern go up and down completely randomly.
Pair Corralation between Avianca Holdings and China Eastern
If you would invest 1,998 in China Eastern Airlines on January 20, 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 | 0.0% |
| Values | Daily Returns |
Avianca Holdings SA vs. China Eastern Airlines
Performance |
| Timeline |
| Avianca Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Eastern Airlines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Avianca Holdings and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avianca Holdings and China Eastern
The main advantage of trading using opposite Avianca Holdings and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avianca Holdings 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.| Avianca Holdings vs. Kinetik Holdings | Avianca Holdings vs. Kenon Holdings | Avianca Holdings vs. NRG Energy | Avianca Holdings vs. Western Midstream Partners |
| China Eastern vs. Western Digital | China Eastern vs. Uber Technologies | China Eastern vs. US GoldMining Common | China Eastern vs. Valneva SE ADR |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |