Correlation Between Eit Environmental and Xinya Electronic
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By analyzing existing cross correlation between Eit Environmental Development and Xinya Electronic Co, you can compare the effects of market volatilities on Eit Environmental and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Xinya Electronic.
Diversification Opportunities for Eit Environmental and Xinya Electronic
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eit and Xinya is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Eit Environmental i.e., Eit Environmental and Xinya Electronic go up and down completely randomly.
Pair Corralation between Eit Environmental and Xinya Electronic
Assuming the 90 days trading horizon Eit Environmental Development is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Eit Environmental Development is 3.07 times less risky than Xinya Electronic. The stock trades about -0.09 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,551 in Xinya Electronic Co on October 30, 2024 and sell it today you would earn a total of 244.00 from holding Xinya Electronic Co or generate 15.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Eit Environmental Development vs. Xinya Electronic Co
Performance |
| Timeline |
| Eit Environmental |
| Xinya Electronic |
Eit Environmental and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Xinya Electronic
The main advantage of trading using opposite Eit Environmental and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Eit Environmental vs. Healthcare Co | Eit Environmental vs. Shanghai Rongtai Health | Eit Environmental vs. JCHX Mining Management | Eit Environmental vs. AVIC Fund Management |
| Xinya Electronic vs. Union Semiconductor Co | Xinya Electronic vs. Shandong Publishing Media | Xinya Electronic vs. GUOMAI Culture Media | Xinya Electronic vs. Thinkingdom Media Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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