Correlation Between Yingde Greatchem and Eastern Communications
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Eastern Communications Co, you can compare the effects of market volatilities on Yingde Greatchem and Eastern Communications 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 Yingde Greatchem with a short position of Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Eastern Communications.
Diversification Opportunities for Yingde Greatchem and Eastern Communications
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yingde and Eastern is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Eastern Communications go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Eastern Communications
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 1.02 times more return on investment than Eastern Communications. However, Yingde Greatchem is 1.02 times more volatile than Eastern Communications Co. It trades about 0.04 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.01 per unit of risk. If you would invest 2,558 in Yingde Greatchem Chemicals on September 13, 2024 and sell it today you would earn a total of 39.00 from holding Yingde Greatchem Chemicals or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Eastern Communications Co
Performance |
| Timeline |
| Yingde Greatchem Che |
| Eastern Communications |
Yingde Greatchem and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Eastern Communications
The main advantage of trading using opposite Yingde Greatchem and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
| Eastern Communications vs. Industrial and Commercial | Eastern Communications vs. China Construction Bank | Eastern Communications vs. Bank of China | Eastern Communications vs. Agricultural Bank of |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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