Correlation Between Eit Environmental and Guangdong Xiongsu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eit Environmental Development and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Eit Environmental and Guangdong Xiongsu 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 Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Guangdong Xiongsu.
Diversification Opportunities for Eit Environmental and Guangdong Xiongsu
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eit and Guangdong is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Eit Environmental i.e., Eit Environmental and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Eit Environmental and Guangdong Xiongsu
Assuming the 90 days trading horizon Eit Environmental Development is expected to generate 0.52 times more return on investment than Guangdong Xiongsu. However, Eit Environmental Development is 1.92 times less risky than Guangdong Xiongsu. It trades about 0.22 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about -0.06 per unit of risk. If you would invest 1,463 in Eit Environmental Development on November 6, 2024 and sell it today you would earn a total of 79.00 from holding Eit Environmental Development or generate 5.4% 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. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Eit Environmental |
| Guangdong Xiongsu |
Eit Environmental and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Guangdong Xiongsu
The main advantage of trading using opposite Eit Environmental and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Eit Environmental vs. Hubei Xingfa Chemicals | Eit Environmental vs. Shenzhen Noposion Agrochemicals | Eit Environmental vs. Aba Chemicals Corp | Eit Environmental vs. Miracll Chemicals Co |
| Guangdong Xiongsu vs. Guocheng Mining Co | Guangdong Xiongsu vs. Guangdong Silvere Sci | Guangdong Xiongsu vs. Tibet Huayu Mining | Guangdong Xiongsu vs. China Everbright 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |