Correlation Between Eit Environmental and Tianjin Capital
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By analyzing existing cross correlation between Eit Environmental Development and Tianjin Capital Environmental, you can compare the effects of market volatilities on Eit Environmental and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Tianjin Capital.
Diversification Opportunities for Eit Environmental and Tianjin Capital
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eit and Tianjin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of Eit Environmental i.e., Eit Environmental and Tianjin Capital go up and down completely randomly.
Pair Corralation between Eit Environmental and Tianjin Capital
Assuming the 90 days trading horizon Eit Environmental Development is expected to generate 2.7 times more return on investment than Tianjin Capital. However, Eit Environmental is 2.7 times more volatile than Tianjin Capital Environmental. It trades about 0.04 of its potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.03 per unit of risk. If you would invest 1,520 in Eit Environmental Development on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Eit Environmental Development or generate 2.37% 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. Tianjin Capital Environmental
Performance |
| Timeline |
| Eit Environmental |
| Tianjin Capital Envi |
Eit Environmental and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Tianjin Capital
The main advantage of trading using opposite Eit Environmental and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| Eit Environmental vs. Dhc Software Co | Eit Environmental vs. Guangzhou Dongfang Hotel | Eit Environmental vs. Xilinmen Furniture Co | Eit Environmental vs. Huatian Hotel Group |
| Tianjin Capital vs. Bank of China | Tianjin Capital vs. Kweichow Moutai Co | Tianjin Capital vs. PetroChina Co Ltd | Tianjin Capital vs. Bank of Communications |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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