Correlation Between 360 Security and Eastern Communications
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By analyzing existing cross correlation between 360 Security Technology and Eastern Communications Co, you can compare the effects of market volatilities on 360 Security and Eastern Communications 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 360 Security with a short position of Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Security and Eastern Communications.
Diversification Opportunities for 360 Security and Eastern Communications
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 360 and Eastern is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding 360 Security Technology and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications and 360 Security 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 360 Security Technology are associated (or correlated) with Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of 360 Security i.e., 360 Security and Eastern Communications go up and down completely randomly.
Pair Corralation between 360 Security and Eastern Communications
Assuming the 90 days trading horizon 360 Security Technology is expected to generate 2.54 times more return on investment than Eastern Communications. However, 360 Security is 2.54 times more volatile than Eastern Communications Co. It trades about 0.26 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.05 per unit of risk. If you would invest 967.00 in 360 Security Technology on September 1, 2024 and sell it today you would earn a total of 373.00 from holding 360 Security Technology or generate 38.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
360 Security Technology vs. Eastern Communications Co
Performance |
| Timeline |
| 360 Security Technology |
| Eastern Communications |
360 Security and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 360 Security and Eastern Communications
The main advantage of trading using opposite 360 Security and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Security position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| 360 Security vs. Shenzhen AV Display Co | 360 Security vs. Zhejiang Zhengguang Industrial | 360 Security vs. Huafa Industrial Co | 360 Security vs. Bosera CMSK Industrial |
| Eastern Communications vs. Wuxi Chemical Equipment | Eastern Communications vs. Yangmei Chemical Co | Eastern Communications vs. Lander Sports Development | Eastern Communications vs. Jiangsu Jinling Sports |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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