Correlation Between Eyebright Medical and China Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eyebright Medical Technology and China Securities 800, you can compare the effects of market volatilities on Eyebright Medical and China Securities 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 Eyebright Medical with a short position of China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and China Securities.
Diversification Opportunities for Eyebright Medical and China Securities
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eyebright and China is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 and Eyebright Medical 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 Eyebright Medical Technology are associated (or correlated) with China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Eyebright Medical i.e., Eyebright Medical and China Securities go up and down completely randomly.
Pair Corralation between Eyebright Medical and China Securities
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to under-perform the China Securities. In addition to that, Eyebright Medical is 2.36 times more volatile than China Securities 800. It trades about -0.08 of its total potential returns per unit of risk. China Securities 800 is currently generating about 0.11 per unit of volatility. If you would invest 403,742 in China Securities 800 on November 7, 2024 and sell it today you would earn a total of 6,898 from holding China Securities 800 or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. China Securities 800
Performance |
| Timeline |
Eyebright Medical and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and China Securities
The main advantage of trading using opposite Eyebright Medical and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.The idea behind Eyebright Medical Technology and China Securities 800 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |