Correlation Between Emdoor Information and Jiangsu Hoperun
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By analyzing existing cross correlation between Emdoor Information Co and Jiangsu Hoperun Software, you can compare the effects of market volatilities on Emdoor Information and Jiangsu Hoperun 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 Jiangsu Hoperun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Jiangsu Hoperun.
Diversification Opportunities for Emdoor Information and Jiangsu Hoperun
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Emdoor and Jiangsu is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and Jiangsu Hoperun Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Hoperun Software 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 Jiangsu Hoperun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Hoperun Software has no effect on the direction of Emdoor Information i.e., Emdoor Information and Jiangsu Hoperun go up and down completely randomly.
Pair Corralation between Emdoor Information and Jiangsu Hoperun
Assuming the 90 days trading horizon Emdoor Information Co is expected to generate 1.32 times more return on investment than Jiangsu Hoperun. However, Emdoor Information is 1.32 times more volatile than Jiangsu Hoperun Software. It trades about -0.04 of its potential returns per unit of risk. Jiangsu Hoperun Software is currently generating about -0.08 per unit of risk. If you would invest 4,792 in Emdoor Information Co on October 20, 2024 and sell it today you would lose (350.00) from holding Emdoor Information Co or give up 7.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emdoor Information Co vs. Jiangsu Hoperun Software
Performance |
| Timeline |
| Emdoor Information |
| Jiangsu Hoperun Software |
Emdoor Information and Jiangsu Hoperun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emdoor Information and Jiangsu Hoperun
The main advantage of trading using opposite Emdoor Information and Jiangsu Hoperun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information position performs unexpectedly, Jiangsu Hoperun 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 Jiangsu Hoperun will offset losses from the drop in Jiangsu Hoperun's long position.| Emdoor Information vs. Kidswant Children Products | Emdoor Information vs. Ningbo Tip Rubber | Emdoor Information vs. Kangxin New Materials | Emdoor Information vs. Jiangnan Mould Plastic |
| Jiangsu Hoperun vs. Xinjiang Communications Construction | Jiangsu Hoperun vs. Hubei Yingtong Telecommunication | Jiangsu Hoperun vs. Runjian Communication Co | Jiangsu Hoperun vs. Tongyu Communication |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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