Correlation Between Eyebright Medical and Fujian Newland
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By analyzing existing cross correlation between Eyebright Medical Technology and Fujian Newland Computer, you can compare the effects of market volatilities on Eyebright Medical and Fujian Newland 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 Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Fujian Newland.
Diversification Opportunities for Eyebright Medical and Fujian Newland
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eyebright and Fujian is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer 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 Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Eyebright Medical i.e., Eyebright Medical and Fujian Newland go up and down completely randomly.
Pair Corralation between Eyebright Medical and Fujian Newland
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to generate 1.06 times more return on investment than Fujian Newland. However, Eyebright Medical is 1.06 times more volatile than Fujian Newland Computer. It trades about 0.08 of its potential returns per unit of risk. Fujian Newland Computer is currently generating about -0.36 per unit of risk. If you would invest 9,366 in Eyebright Medical Technology on October 12, 2024 and sell it today you would earn a total of 323.00 from holding Eyebright Medical Technology or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. Fujian Newland Computer
Performance |
| Timeline |
| Eyebright Medical |
| Fujian Newland Computer |
Eyebright Medical and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Fujian Newland
The main advantage of trading using opposite Eyebright Medical and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Eyebright Medical vs. Guangzhou KingTeller Technology | Eyebright Medical vs. Holitech Technology Co | Eyebright Medical vs. Shanghai Ziyan Foods | Eyebright Medical vs. V V Food |
| Fujian Newland vs. China Life Insurance | Fujian Newland vs. Cinda Securities Co | Fujian Newland vs. Piotech Inc A | Fujian Newland vs. Dongxing Sec Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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