Correlation Between Hang Xiao and Eit Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hang Xiao Steel and Eit Environmental Development, you can compare the effects of market volatilities on Hang Xiao and Eit Environmental 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 Hang Xiao with a short position of Eit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Xiao and Eit Environmental.
Diversification Opportunities for Hang Xiao and Eit Environmental
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hang and Eit is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hang Xiao Steel and Eit Environmental Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eit Environmental and Hang Xiao 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 Hang Xiao Steel are associated (or correlated) with Eit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eit Environmental has no effect on the direction of Hang Xiao i.e., Hang Xiao and Eit Environmental go up and down completely randomly.
Pair Corralation between Hang Xiao and Eit Environmental
Assuming the 90 days trading horizon Hang Xiao Steel is expected to under-perform the Eit Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Hang Xiao Steel is 1.97 times less risky than Eit Environmental. The stock trades about -0.07 of its potential returns per unit of risk. The Eit Environmental Development is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,520 in Eit Environmental Development on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Eit Environmental Development or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hang Xiao Steel vs. Eit Environmental Development
Performance |
| Timeline |
| Hang Xiao Steel |
| Eit Environmental |
Hang Xiao and Eit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Xiao and Eit Environmental
The main advantage of trading using opposite Hang Xiao and Eit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Xiao position performs unexpectedly, Eit Environmental 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 Eit Environmental will offset losses from the drop in Eit Environmental's long position.| Hang Xiao vs. Western Metal Materials | Hang Xiao vs. Heilongjiang Transport Development | Hang Xiao vs. Dezhan HealthCare Co | Hang Xiao vs. Shanghai Rongtai Health |
| Eit Environmental vs. Dhc Software Co | Eit Environmental vs. Guangzhou Dongfang Hotel | Eit Environmental vs. Xilinmen Furniture Co | Eit Environmental vs. Huatian Hotel 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |