Correlation Between Eit Environmental and China Galaxy
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By analyzing existing cross correlation between Eit Environmental Development and China Galaxy Securities, you can compare the effects of market volatilities on Eit Environmental and China Galaxy 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 China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and China Galaxy.
Diversification Opportunities for Eit Environmental and China Galaxy
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eit and China is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy 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 China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Eit Environmental i.e., Eit Environmental and China Galaxy go up and down completely randomly.
Pair Corralation between Eit Environmental and China Galaxy
Assuming the 90 days trading horizon Eit Environmental Development is expected to generate 0.95 times more return on investment than China Galaxy. However, Eit Environmental Development is 1.06 times less risky than China Galaxy. It trades about -0.16 of its potential returns per unit of risk. China Galaxy Securities is currently generating about -0.18 per unit of risk. If you would invest 1,615 in Eit Environmental Development on October 17, 2024 and sell it today you would lose (127.00) from holding Eit Environmental Development or give up 7.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eit Environmental Development vs. China Galaxy Securities
Performance |
| Timeline |
| Eit Environmental |
| China Galaxy Securities |
Eit Environmental and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and China Galaxy
The main advantage of trading using opposite Eit Environmental and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy's long position.| Eit Environmental vs. Shandong Rike Chemical | Eit Environmental vs. Jilin Chemical Fibre | Eit Environmental vs. JCHX Mining Management | Eit Environmental vs. Dosilicon Co |
| China Galaxy vs. Jinlong Machinery Electronic | China Galaxy vs. Iat Automobile Technology | China Galaxy vs. Huasi Agricultural Development | China Galaxy vs. Masterwork Machinery |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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