Correlation Between Emdoor Information and Beijing Lier
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By analyzing existing cross correlation between Emdoor Information Co and Beijing Lier High, you can compare the effects of market volatilities on Emdoor Information and Beijing Lier 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 Emdoor Information with a short position of Beijing Lier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Beijing Lier.
Diversification Opportunities for Emdoor Information and Beijing Lier
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Emdoor and Beijing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and Beijing Lier High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lier High and Emdoor Information 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 Emdoor Information Co are associated (or correlated) with Beijing Lier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lier High has no effect on the direction of Emdoor Information i.e., Emdoor Information and Beijing Lier go up and down completely randomly.
Pair Corralation between Emdoor Information and Beijing Lier
Assuming the 90 days trading horizon Emdoor Information Co is expected to generate 1.61 times more return on investment than Beijing Lier. However, Emdoor Information is 1.61 times more volatile than Beijing Lier High. It trades about 0.04 of its potential returns per unit of risk. Beijing Lier High is currently generating about 0.07 per unit of risk. If you would invest 4,092 in Emdoor Information Co on September 15, 2024 and sell it today you would earn a total of 1,111 from holding Emdoor Information Co or generate 27.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Emdoor Information Co vs. Beijing Lier High
Performance |
| Timeline |
| Emdoor Information |
| Beijing Lier High |
Emdoor Information and Beijing Lier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emdoor Information and Beijing Lier
The main advantage of trading using opposite Emdoor Information and Beijing Lier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information position performs unexpectedly, Beijing Lier 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 Beijing Lier will offset losses from the drop in Beijing Lier's long position.| Emdoor Information vs. Biwin Storage Technology | Emdoor Information vs. PetroChina Co Ltd | Emdoor Information vs. Industrial and Commercial | Emdoor Information vs. China Construction Bank |
| Beijing Lier vs. Emdoor Information Co | Beijing Lier vs. Blue Sail Medical | Beijing Lier vs. Xian International Medical | Beijing Lier vs. Digital China Information |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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