Correlation Between Eit Environmental and Anhui Tongguan
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By analyzing existing cross correlation between Eit Environmental Development and Anhui Tongguan Copper, you can compare the effects of market volatilities on Eit Environmental and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Anhui Tongguan.
Diversification Opportunities for Eit Environmental and Anhui Tongguan
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eit and Anhui is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Eit Environmental i.e., Eit Environmental and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Eit Environmental and Anhui Tongguan
Assuming the 90 days trading horizon Eit Environmental Development is expected to under-perform the Anhui Tongguan. But the stock apears to be less risky and, when comparing its historical volatility, Eit Environmental Development is 1.86 times less risky than Anhui Tongguan. The stock trades about -0.06 of its potential returns per unit of risk. The Anhui Tongguan Copper is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,055 in Anhui Tongguan Copper on October 24, 2024 and sell it today you would earn a total of 64.00 from holding Anhui Tongguan Copper or generate 6.07% 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. Anhui Tongguan Copper
Performance |
| Timeline |
| Eit Environmental |
| Anhui Tongguan Copper |
Eit Environmental and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Anhui Tongguan
The main advantage of trading using opposite Eit Environmental and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Eit Environmental vs. Shenzhen Topway Video | Eit Environmental vs. Qingdao Foods Co | Eit Environmental vs. V V Food | Eit Environmental vs. Youyou Foods Co |
| Anhui Tongguan vs. Eit Environmental Development | Anhui Tongguan vs. Wuxi Xuelang Environmental | Anhui Tongguan vs. Fujian Nanwang Environment | Anhui Tongguan vs. Hangzhou Guotai Environmental |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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