Correlation Between China Securities and EmbedWay TechCorp
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By analyzing existing cross correlation between China Securities 800 and EmbedWay TechCorp, you can compare the effects of market volatilities on China Securities and EmbedWay TechCorp 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 China Securities with a short position of EmbedWay TechCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and EmbedWay TechCorp.
Diversification Opportunities for China Securities and EmbedWay TechCorp
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and EmbedWay is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and EmbedWay TechCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EmbedWay TechCorp and China Securities 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 China Securities 800 are associated (or correlated) with EmbedWay TechCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EmbedWay TechCorp has no effect on the direction of China Securities i.e., China Securities and EmbedWay TechCorp go up and down completely randomly.
Pair Corralation between China Securities and EmbedWay TechCorp
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.4 times more return on investment than EmbedWay TechCorp. However, China Securities 800 is 2.51 times less risky than EmbedWay TechCorp. It trades about 0.15 of its potential returns per unit of risk. EmbedWay TechCorp is currently generating about 0.06 per unit of risk. If you would invest 418,239 in China Securities 800 on September 29, 2024 and sell it today you would earn a total of 11,346 from holding China Securities 800 or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. EmbedWay TechCorp
Performance |
| Timeline |
China Securities and EmbedWay TechCorp Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
EmbedWay TechCorp
Pair trading matchups for EmbedWay TechCorp
Pair Trading with China Securities and EmbedWay TechCorp
The main advantage of trading using opposite China Securities and EmbedWay TechCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, EmbedWay TechCorp 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 EmbedWay TechCorp will offset losses from the drop in EmbedWay TechCorp's long position.| China Securities vs. Zhejiang JIULI Hi tech | China Securities vs. Fujian Newland Computer | China Securities vs. Beijing Seeyon Internet | China Securities vs. Maccura Biotechnology Co |
| EmbedWay TechCorp vs. Industrial and Commercial | EmbedWay TechCorp vs. Agricultural Bank of | EmbedWay TechCorp vs. China Construction Bank | EmbedWay TechCorp 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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