Correlation Between Eit Environmental and Konfoong Materials
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By analyzing existing cross correlation between Eit Environmental Development and Konfoong Materials International, you can compare the effects of market volatilities on Eit Environmental and Konfoong Materials 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 Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Konfoong Materials.
Diversification Opportunities for Eit Environmental and Konfoong Materials
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eit and Konfoong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong Materials 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 Konfoong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konfoong Materials has no effect on the direction of Eit Environmental i.e., Eit Environmental and Konfoong Materials go up and down completely randomly.
Pair Corralation between Eit Environmental and Konfoong Materials
Assuming the 90 days trading horizon Eit Environmental Development is expected to generate 0.92 times more return on investment than Konfoong Materials. However, Eit Environmental Development is 1.08 times less risky than Konfoong Materials. It trades about 0.0 of its potential returns per unit of risk. Konfoong Materials International is currently generating about -0.07 per unit of risk. If you would invest 1,556 in Eit Environmental Development on October 30, 2024 and sell it today you would lose (14.00) from holding Eit Environmental Development or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eit Environmental Development vs. Konfoong Materials Internation
Performance |
| Timeline |
| Eit Environmental |
| Konfoong Materials |
Eit Environmental and Konfoong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Konfoong Materials
The main advantage of trading using opposite Eit Environmental and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Konfoong Materials 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 Konfoong Materials will offset losses from the drop in Konfoong Materials' long position.| Eit Environmental vs. Healthcare Co | Eit Environmental vs. Shanghai Rongtai Health | Eit Environmental vs. JCHX Mining Management | Eit Environmental vs. AVIC Fund Management |
| Konfoong Materials vs. Jiangsu Financial Leasing | Konfoong Materials vs. Zhejiang Construction Investment | Konfoong Materials vs. Zhejiang Publishing Media | Konfoong Materials vs. Beijing Kaiwen Education |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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