Correlation Between Eit Environmental and Shanghai Jinfeng
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By analyzing existing cross correlation between Eit Environmental Development and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Eit Environmental and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Shanghai Jinfeng.
Diversification Opportunities for Eit Environmental and Shanghai Jinfeng
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eit and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Eit Environmental i.e., Eit Environmental and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Eit Environmental and Shanghai Jinfeng
Assuming the 90 days trading horizon Eit Environmental Development is expected to under-perform the Shanghai Jinfeng. But the stock apears to be less risky and, when comparing its historical volatility, Eit Environmental Development is 1.4 times less risky than Shanghai Jinfeng. The stock trades about -0.1 of its potential returns per unit of risk. The Shanghai Jinfeng Wine is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 554.00 in Shanghai Jinfeng Wine on September 13, 2024 and sell it today you would earn a total of 107.00 from holding Shanghai Jinfeng Wine or generate 19.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eit Environmental Development vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Eit Environmental |
| Shanghai Jinfeng Wine |
Eit Environmental and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Shanghai Jinfeng
The main advantage of trading using opposite Eit Environmental and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Eit Environmental vs. Everjoy Health Group | Eit Environmental vs. Juneyao Airlines | Eit Environmental vs. Anhui Huaren Health | Eit Environmental vs. Shanghai Rongtai Health |
| Shanghai Jinfeng vs. China Life Insurance | Shanghai Jinfeng vs. Cinda Securities Co | Shanghai Jinfeng vs. Piotech Inc A | Shanghai Jinfeng vs. Dongxing Sec Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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