Correlation Between Eit Environmental and Postal Savings
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By analyzing existing cross correlation between Eit Environmental Development and Postal Savings Bank, you can compare the effects of market volatilities on Eit Environmental and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Postal Savings.
Diversification Opportunities for Eit Environmental and Postal Savings
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eit and Postal is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of Eit Environmental i.e., Eit Environmental and Postal Savings go up and down completely randomly.
Pair Corralation between Eit Environmental and Postal Savings
Assuming the 90 days trading horizon Eit Environmental Development is expected to under-perform the Postal Savings. In addition to that, Eit Environmental is 1.14 times more volatile than Postal Savings Bank. It trades about -0.32 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about -0.13 per unit of volatility. If you would invest 550.00 in Postal Savings Bank on October 16, 2024 and sell it today you would lose (26.00) from holding Postal Savings Bank or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eit Environmental Development vs. Postal Savings Bank
Performance |
| Timeline |
| Eit Environmental |
| Postal Savings Bank |
Eit Environmental and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Postal Savings
The main advantage of trading using opposite Eit Environmental and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| Eit Environmental vs. HeNan Splendor Science | Eit Environmental vs. Xiamen Bank Co | Eit Environmental vs. Yindu Kitchen Equipment | Eit Environmental vs. China Sports Industry |
| Postal Savings vs. Hangzhou Guotai Environmental | Postal Savings vs. Anyang Iron Steel | Postal Savings vs. Eit Environmental Development | Postal Savings vs. Shandong Iron and |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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