Correlation Between Eit Environmental and Huagong Tech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eit Environmental Development and Huagong Tech Co, you can compare the effects of market volatilities on Eit Environmental and Huagong Tech 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 Eit Environmental with a short position of Huagong Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Huagong Tech.
Diversification Opportunities for Eit Environmental and Huagong Tech
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eit and Huagong is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Huagong Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huagong Tech and Eit Environmental 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 Eit Environmental Development are associated (or correlated) with Huagong Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huagong Tech has no effect on the direction of Eit Environmental i.e., Eit Environmental and Huagong Tech go up and down completely randomly.
Pair Corralation between Eit Environmental and Huagong Tech
Assuming the 90 days trading horizon Eit Environmental is expected to generate 3.43 times less return on investment than Huagong Tech. But when comparing it to its historical volatility, Eit Environmental Development is 1.28 times less risky than Huagong Tech. It trades about 0.02 of its potential returns per unit of risk. Huagong Tech Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,866 in Huagong Tech Co on October 15, 2024 and sell it today you would earn a total of 1,931 from holding Huagong Tech Co or generate 103.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eit Environmental Development vs. Huagong Tech Co
Performance |
| Timeline |
| Eit Environmental |
| Huagong Tech |
Eit Environmental and Huagong Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Huagong Tech
The main advantage of trading using opposite Eit Environmental and Huagong Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Huagong Tech 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 Huagong Tech will offset losses from the drop in Huagong Tech's long position.| Eit Environmental vs. HeNan Splendor Science | Eit Environmental vs. Xiamen Bank Co | Eit Environmental vs. Yindu Kitchen Equipment | Eit Environmental vs. China Sports Industry |
| Huagong Tech vs. Biwin Storage Technology | Huagong Tech vs. PetroChina Co Ltd | Huagong Tech vs. Industrial and Commercial | Huagong Tech vs. China Construction Bank |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |