Correlation Between Shanghai Rongtai and Eit Environmental
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By analyzing existing cross correlation between Shanghai Rongtai Health and Eit Environmental Development, you can compare the effects of market volatilities on Shanghai Rongtai 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 Rongtai with a short position of Eit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Eit Environmental.
Diversification Opportunities for Shanghai Rongtai 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 Rongtai Health 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 Rongtai 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 Rongtai Health 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 Rongtai i.e., Shanghai Rongtai and Eit Environmental go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Eit Environmental
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to generate 1.02 times more return on investment than Eit Environmental. However, Shanghai Rongtai is 1.02 times more volatile than Eit Environmental Development. It trades about 0.27 of its potential returns per unit of risk. Eit Environmental Development is currently generating about -0.08 per unit of risk. If you would invest 1,463 in Shanghai Rongtai Health on September 14, 2024 and sell it today you would earn a total of 209.00 from holding Shanghai Rongtai Health or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Eit Environmental Development
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Eit Environmental |
Shanghai Rongtai and Eit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Eit Environmental
The main advantage of trading using opposite Shanghai Rongtai and Eit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai 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 Rongtai vs. Lutian Machinery Co | Shanghai Rongtai vs. China Longyuan Power | Shanghai Rongtai vs. PetroChina Co Ltd | Shanghai Rongtai vs. Bank of China |
| Eit Environmental vs. Everjoy Health Group | Eit Environmental vs. Juneyao Airlines | Eit Environmental vs. Anhui Huaren Health | Eit Environmental vs. Shanghai Rongtai Health |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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