Correlation Between Eit Environmental and Zhejiang Juhua
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By analyzing existing cross correlation between Eit Environmental Development and Zhejiang Juhua Co, you can compare the effects of market volatilities on Eit Environmental and Zhejiang Juhua 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 Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Zhejiang Juhua.
Diversification Opportunities for Eit Environmental and Zhejiang Juhua
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eit and Zhejiang is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua 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 Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Eit Environmental i.e., Eit Environmental and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Eit Environmental and Zhejiang Juhua
Assuming the 90 days trading horizon Eit Environmental Development is expected to under-perform the Zhejiang Juhua. But the stock apears to be less risky and, when comparing its historical volatility, Eit Environmental Development is 1.4 times less risky than Zhejiang Juhua. The stock trades about -0.31 of its potential returns per unit of risk. The Zhejiang Juhua Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,158 in Zhejiang Juhua Co on October 16, 2024 and sell it today you would earn a total of 302.00 from holding Zhejiang Juhua Co or generate 13.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eit Environmental Development vs. Zhejiang Juhua Co
Performance |
| Timeline |
| Eit Environmental |
| Zhejiang Juhua |
Eit Environmental and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Zhejiang Juhua
The main advantage of trading using opposite Eit Environmental and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Zhejiang Juhua 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 Zhejiang Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Eit Environmental vs. Guizhou Chanhen Chemical | Eit Environmental vs. Air China Ltd | Eit Environmental vs. MayAir Technology Co | Eit Environmental vs. Jiangsu Yanghe Brewery |
| Zhejiang Juhua vs. Eastern Air Logistics | Zhejiang Juhua vs. HaiXin Foods Co | Zhejiang Juhua vs. Harbin Air Conditioning | Zhejiang Juhua vs. Jiahe Foods Industry |
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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