Correlation Between Eit Environmental and Cinda Securities
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By analyzing existing cross correlation between Eit Environmental Development and Cinda Securities Co, you can compare the effects of market volatilities on Eit Environmental and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Cinda Securities.
Diversification Opportunities for Eit Environmental and Cinda Securities
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eit and Cinda is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Eit Environmental i.e., Eit Environmental and Cinda Securities go up and down completely randomly.
Pair Corralation between Eit Environmental and Cinda Securities
Assuming the 90 days trading horizon Eit Environmental Development is expected to generate 0.85 times more return on investment than Cinda Securities. However, Eit Environmental Development is 1.18 times less risky than Cinda Securities. It trades about -0.09 of its potential returns per unit of risk. Cinda Securities Co is currently generating about -0.4 per unit of risk. If you would invest 1,601 in Eit Environmental Development on October 29, 2024 and sell it today you would lose (59.00) from holding Eit Environmental Development or give up 3.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eit Environmental Development vs. Cinda Securities Co
Performance |
| Timeline |
| Eit Environmental |
| Cinda Securities |
Eit Environmental and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Cinda Securities
The main advantage of trading using opposite Eit Environmental and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Eit Environmental vs. Zhejiang JIULI Hi tech | Eit Environmental vs. Hengli Petrochemical Co | Eit Environmental vs. Strait Innovation Internet | Eit Environmental vs. Jilin Jlu Communication |
| Cinda Securities vs. Eit Environmental Development | Cinda Securities vs. Elite Color Environmental | Cinda Securities vs. Yuanjie Semiconductor Technology | Cinda Securities vs. Thinkon Semiconductor Jinzhou |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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