Correlation Between Financial Street and Aier Eye
Specify exactly 2 symbols:
By analyzing existing cross correlation between Financial Street Holdings and Aier Eye Hospital, you can compare the effects of market volatilities on Financial Street and Aier Eye 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 Financial Street with a short position of Aier Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Street and Aier Eye.
Diversification Opportunities for Financial Street and Aier Eye
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Financial and Aier is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings and Aier Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aier Eye Hospital and Financial Street 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 Financial Street Holdings are associated (or correlated) with Aier Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aier Eye Hospital has no effect on the direction of Financial Street i.e., Financial Street and Aier Eye go up and down completely randomly.
Pair Corralation between Financial Street and Aier Eye
Assuming the 90 days trading horizon Financial Street Holdings is expected to generate 0.98 times more return on investment than Aier Eye. However, Financial Street Holdings is 1.02 times less risky than Aier Eye. It trades about -0.03 of its potential returns per unit of risk. Aier Eye Hospital is currently generating about -0.04 per unit of risk. If you would invest 526.00 in Financial Street Holdings on November 2, 2024 and sell it today you would lose (224.00) from holding Financial Street Holdings or give up 42.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial Street Holdings vs. Aier Eye Hospital
Performance |
| Timeline |
| Financial Street Holdings |
| Aier Eye Hospital |
Financial Street and Aier Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Street and Aier Eye
The main advantage of trading using opposite Financial Street and Aier Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Street position performs unexpectedly, Aier Eye 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 Aier Eye will offset losses from the drop in Aier Eye's long position.| Financial Street vs. China Longyuan Power | Financial Street vs. PetroChina Co Ltd | Financial Street vs. Huaneng Lancang River | Financial Street vs. ShuYu Civilian Pharmacy |
| Aier Eye vs. Nantong JiangTian Chemical | Aier Eye vs. Bsm Chemical Co | Aier Eye vs. Zhejiang Huatong Meat | Aier Eye vs. Ligao Foods CoLtd |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |