Correlation Between Shanghai Jinfeng and Eit Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Jinfeng Wine and Eit Environmental Development, you can compare the effects of market volatilities on Shanghai Jinfeng 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 Shanghai Jinfeng with a short position of Eit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Eit Environmental.
Diversification Opportunities for Shanghai Jinfeng and Eit Environmental
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Eit is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Eit Environmental Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eit Environmental and Shanghai Jinfeng 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 Shanghai Jinfeng Wine 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 Shanghai Jinfeng i.e., Shanghai Jinfeng and Eit Environmental go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Eit Environmental
Assuming the 90 days trading horizon Shanghai Jinfeng is expected to generate 2.09 times less return on investment than Eit Environmental. But when comparing it to its historical volatility, Shanghai Jinfeng Wine is 1.12 times less risky than Eit Environmental. It trades about 0.02 of its potential returns per unit of risk. Eit Environmental Development is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,450 in Eit Environmental Development on September 12, 2024 and sell it today you would earn a total of 224.00 from holding Eit Environmental Development or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Eit Environmental Development
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Eit Environmental |
Shanghai Jinfeng and Eit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Eit Environmental
The main advantage of trading using opposite Shanghai Jinfeng and Eit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng 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.| Shanghai Jinfeng vs. China Petroleum Chemical | Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. China State Construction | Shanghai Jinfeng vs. China Railway Group |
| Eit Environmental vs. Agricultural Bank of | Eit Environmental vs. Industrial and Commercial | Eit Environmental vs. Bank of China | Eit Environmental vs. PetroChina Co Ltd |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |