Correlation Between Eit Environmental and Jiangsu Zhongtian
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By analyzing existing cross correlation between Eit Environmental Development and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Eit Environmental and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Jiangsu Zhongtian.
Diversification Opportunities for Eit Environmental and Jiangsu Zhongtian
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eit and Jiangsu is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Eit Environmental i.e., Eit Environmental and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Eit Environmental and Jiangsu Zhongtian
Assuming the 90 days trading horizon Eit Environmental Development is expected to generate 1.27 times more return on investment than Jiangsu Zhongtian. However, Eit Environmental is 1.27 times more volatile than Jiangsu Zhongtian Technology. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about -0.09 per unit of risk. If you would invest 1,554 in Eit Environmental Development on September 25, 2024 and sell it today you would earn a total of 7.00 from holding Eit Environmental Development or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eit Environmental Development vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Eit Environmental |
| Jiangsu Zhongtian |
Eit Environmental and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Jiangsu Zhongtian
The main advantage of trading using opposite Eit Environmental and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Eit Environmental vs. Ming Yang Smart | Eit Environmental vs. 159681 | Eit Environmental vs. 159005 | Eit Environmental vs. Loctek Ergonomic Technology |
| Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. Contemporary Amperex Technology | Jiangsu Zhongtian vs. G bits Network Technology | Jiangsu Zhongtian vs. BYD Co Ltd |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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