Correlation Between Emdoor Information and King Strong
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By analyzing existing cross correlation between Emdoor Information Co and King Strong New Material, you can compare the effects of market volatilities on Emdoor Information and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and King Strong.
Diversification Opportunities for Emdoor Information and King Strong
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Emdoor and King is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Emdoor Information i.e., Emdoor Information and King Strong go up and down completely randomly.
Pair Corralation between Emdoor Information and King Strong
Assuming the 90 days trading horizon Emdoor Information Co is expected to generate 1.57 times more return on investment than King Strong. However, Emdoor Information is 1.57 times more volatile than King Strong New Material. It trades about 0.11 of its potential returns per unit of risk. King Strong New Material is currently generating about 0.06 per unit of risk. If you would invest 4,679 in Emdoor Information Co on September 27, 2024 and sell it today you would earn a total of 457.00 from holding Emdoor Information Co or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emdoor Information Co vs. King Strong New Material
Performance |
| Timeline |
| Emdoor Information |
| King Strong New |
Emdoor Information and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emdoor Information and King Strong
The main advantage of trading using opposite Emdoor Information and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong's long position.| Emdoor Information vs. Zhejiang Yayi Metal | Emdoor Information vs. Western Metal Materials | Emdoor Information vs. Duzhe Publishing Media | Emdoor Information vs. Tibet Huayu Mining |
| King Strong vs. Emdoor Information Co | King Strong vs. Yonyou Auto Information | King Strong vs. Jiangsu Financial Leasing | King Strong vs. Talkweb Information System |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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