Correlation Between Eit Environmental and Beijing Bashi
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By analyzing existing cross correlation between Eit Environmental Development and Beijing Bashi Media, you can compare the effects of market volatilities on Eit Environmental and Beijing Bashi 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 Beijing Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Beijing Bashi.
Diversification Opportunities for Eit Environmental and Beijing Bashi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eit and Beijing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media 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 Beijing Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of Eit Environmental i.e., Eit Environmental and Beijing Bashi go up and down completely randomly.
Pair Corralation between Eit Environmental and Beijing Bashi
Assuming the 90 days trading horizon Eit Environmental Development is expected to under-perform the Beijing Bashi. In addition to that, Eit Environmental is 1.71 times more volatile than Beijing Bashi Media. It trades about 0.0 of its total potential returns per unit of risk. Beijing Bashi Media is currently generating about 0.02 per unit of volatility. If you would invest 428.00 in Beijing Bashi Media on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Beijing Bashi Media or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eit Environmental Development vs. Beijing Bashi Media
Performance |
| Timeline |
| Eit Environmental |
| Beijing Bashi Media |
Eit Environmental and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Beijing Bashi
The main advantage of trading using opposite Eit Environmental and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Beijing Bashi 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 Beijing Bashi will offset losses from the drop in Beijing Bashi's long position.| Eit Environmental vs. China Petroleum Chemical | Eit Environmental vs. PetroChina Co Ltd | Eit Environmental vs. China State Construction | Eit Environmental vs. China Railway Group |
| Beijing Bashi vs. Runjian Communication Co | Beijing Bashi vs. Cowealth Medical China | Beijing Bashi vs. CICT Mobile Communication | Beijing Bashi vs. Hengkang Medical Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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