Correlation Between Emdoor Information and Longxing Chemical
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By analyzing existing cross correlation between Emdoor Information Co and Longxing Chemical Stock, you can compare the effects of market volatilities on Emdoor Information and Longxing Chemical 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Longxing Chemical.
Diversification Opportunities for Emdoor Information and Longxing Chemical
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Emdoor and Longxing is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Emdoor Information i.e., Emdoor Information and Longxing Chemical go up and down completely randomly.
Pair Corralation between Emdoor Information and Longxing Chemical
Assuming the 90 days trading horizon Emdoor Information Co is expected to under-perform the Longxing Chemical. In addition to that, Emdoor Information is 1.21 times more volatile than Longxing Chemical Stock. It trades about -0.03 of its total potential returns per unit of risk. Longxing Chemical Stock is currently generating about 0.08 per unit of volatility. If you would invest 537.00 in Longxing Chemical Stock on October 24, 2024 and sell it today you would earn a total of 28.00 from holding Longxing Chemical Stock or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emdoor Information Co vs. Longxing Chemical Stock
Performance |
| Timeline |
| Emdoor Information |
| Longxing Chemical Stock |
Emdoor Information and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emdoor Information and Longxing Chemical
The main advantage of trading using opposite Emdoor Information and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Emdoor Information vs. Ming Yang Smart | Emdoor Information vs. 159681 | Emdoor Information vs. 159005 | Emdoor Information vs. Loctek Ergonomic Technology |
| Longxing Chemical vs. Ningbo Jintian Copper | Longxing Chemical vs. Xinjiang Beixin RoadBridge | Longxing Chemical vs. China Minmetals Rare | Longxing Chemical vs. Ningxia Younglight Chemicals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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