Correlation Between Eit Environmental and Shenzhen MTC
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By analyzing existing cross correlation between Eit Environmental Development and Shenzhen MTC Co, you can compare the effects of market volatilities on Eit Environmental and Shenzhen MTC 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 Shenzhen MTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Shenzhen MTC.
Diversification Opportunities for Eit Environmental and Shenzhen MTC
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eit and Shenzhen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Shenzhen MTC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MTC 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 Shenzhen MTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MTC has no effect on the direction of Eit Environmental i.e., Eit Environmental and Shenzhen MTC go up and down completely randomly.
Pair Corralation between Eit Environmental and Shenzhen MTC
Assuming the 90 days trading horizon Eit Environmental is expected to generate 1.46 times less return on investment than Shenzhen MTC. In addition to that, Eit Environmental is 1.16 times more volatile than Shenzhen MTC Co. It trades about 0.02 of its total potential returns per unit of risk. Shenzhen MTC Co is currently generating about 0.04 per unit of volatility. If you would invest 354.00 in Shenzhen MTC Co on August 29, 2024 and sell it today you would earn a total of 136.00 from holding Shenzhen MTC Co or generate 38.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eit Environmental Development vs. Shenzhen MTC Co
Performance |
| Timeline |
| Eit Environmental |
| Shenzhen MTC |
Eit Environmental and Shenzhen MTC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Shenzhen MTC
The main advantage of trading using opposite Eit Environmental and Shenzhen MTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Shenzhen MTC 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 Shenzhen MTC will offset losses from the drop in Shenzhen MTC's long position.| Eit Environmental vs. PetroChina Co Ltd | Eit Environmental vs. China State Construction | Eit Environmental vs. China Mobile Limited | Eit Environmental vs. Industrial and Commercial |
| Shenzhen MTC vs. ZYF Lopsking Aluminum | Shenzhen MTC vs. Sinocelltech Group | Shenzhen MTC vs. Eyebright Medical Technology | Shenzhen MTC vs. Guangdong Jingyi Metal |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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