Correlation Between Eit Environmental and China Publishing
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By analyzing existing cross correlation between Eit Environmental Development and China Publishing Media, you can compare the effects of market volatilities on Eit Environmental and China Publishing 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 Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and China Publishing.
Diversification Opportunities for Eit Environmental and China Publishing
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eit and China is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Eit Environmental i.e., Eit Environmental and China Publishing go up and down completely randomly.
Pair Corralation between Eit Environmental and China Publishing
Assuming the 90 days trading horizon Eit Environmental Development is expected to generate 0.82 times more return on investment than China Publishing. However, Eit Environmental Development is 1.22 times less risky than China Publishing. It trades about 0.02 of its potential returns per unit of risk. China Publishing Media is currently generating about -0.03 per unit of risk. If you would invest 1,435 in Eit Environmental Development on August 31, 2024 and sell it today you would earn a total of 119.00 from holding Eit Environmental Development or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Eit Environmental Development vs. China Publishing Media
Performance |
| Timeline |
| Eit Environmental |
| China Publishing Media |
Eit Environmental and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and China Publishing
The main advantage of trading using opposite Eit Environmental and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, China Publishing 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 Publishing will offset losses from the drop in China Publishing's long position.| Eit Environmental vs. Cultural Investment Holdings | Eit Environmental vs. Gome Telecom Equipment | Eit Environmental vs. Bus Online Co | Eit Environmental vs. Holitech Technology Co |
| China Publishing vs. BYD Co Ltd | China Publishing vs. Agricultural Bank of | China Publishing vs. Industrial and Commercial | China Publishing vs. China State Construction |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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