Correlation Between China Publishing and Eit Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Publishing Media and Eit Environmental Development, you can compare the effects of market volatilities on China Publishing 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 China Publishing with a short position of Eit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Eit Environmental.
Diversification Opportunities for China Publishing and Eit Environmental
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Eit is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Eit Environmental Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eit Environmental and China Publishing 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 China Publishing Media 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 China Publishing i.e., China Publishing and Eit Environmental go up and down completely randomly.
Pair Corralation between China Publishing and Eit Environmental
Assuming the 90 days trading horizon China Publishing Media is expected to generate 0.89 times more return on investment than Eit Environmental. However, China Publishing Media is 1.12 times less risky than Eit Environmental. It trades about 0.19 of its potential returns per unit of risk. Eit Environmental Development is currently generating about 0.14 per unit of risk. If you would invest 570.00 in China Publishing Media on August 28, 2024 and sell it today you would earn a total of 268.00 from holding China Publishing Media or generate 47.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Eit Environmental Development
Performance |
| Timeline |
| China Publishing Media |
| Eit Environmental |
China Publishing and Eit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Eit Environmental
The main advantage of trading using opposite China Publishing and Eit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing 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.| China Publishing vs. Eit Environmental Development | China Publishing vs. Gansu Jiu Steel | China Publishing vs. Hang Xiao Steel | China Publishing vs. Jiugui Liquor Co |
| Eit Environmental vs. China Petroleum Chemical | Eit Environmental vs. PetroChina Co Ltd | Eit Environmental vs. China State Construction | Eit Environmental vs. China Railway 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |