Correlation Between China Securities and Eyebright Medical
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By analyzing existing cross correlation between China Securities 800 and Eyebright Medical Technology, you can compare the effects of market volatilities on China Securities and Eyebright Medical 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 Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Eyebright Medical.
Diversification Opportunities for China Securities and Eyebright Medical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Eyebright is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical 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 Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of China Securities i.e., China Securities and Eyebright Medical go up and down completely randomly.
Pair Corralation between China Securities and Eyebright Medical
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.42 times more return on investment than Eyebright Medical. However, China Securities 800 is 2.39 times less risky than Eyebright Medical. It trades about 0.0 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about -0.16 per unit of risk. If you would invest 421,099 in China Securities 800 on August 31, 2024 and sell it today you would lose (1,295) from holding China Securities 800 or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Eyebright Medical Technology
Performance |
| Timeline |
China Securities and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Eyebright Medical Technology
Pair trading matchups for Eyebright Medical
Pair Trading with China Securities and Eyebright Medical
The main advantage of trading using opposite China Securities and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Eyebright Medical 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 Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.| China Securities vs. Sinofibers Technology Co | China Securities vs. Anji Foodstuff Co | China Securities vs. Niutech Environment Technology | China Securities vs. Linewell Software Co |
| Eyebright Medical vs. PetroChina Co Ltd | Eyebright Medical vs. China Mobile Limited | Eyebright Medical vs. Ping An Insurance | Eyebright Medical vs. China Petroleum Chemical |
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.
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