Correlation Between Eyebright Medical and Kuang Chi
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By analyzing existing cross correlation between Eyebright Medical Technology and Kuang Chi Technologies, you can compare the effects of market volatilities on Eyebright Medical and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Kuang Chi.
Diversification Opportunities for Eyebright Medical and Kuang Chi
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eyebright and Kuang is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Eyebright Medical i.e., Eyebright Medical and Kuang Chi go up and down completely randomly.
Pair Corralation between Eyebright Medical and Kuang Chi
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to under-perform the Kuang Chi. In addition to that, Eyebright Medical is 1.11 times more volatile than Kuang Chi Technologies. It trades about -0.03 of its total potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.07 per unit of volatility. If you would invest 1,858 in Kuang Chi Technologies on October 27, 2024 and sell it today you would earn a total of 2,249 from holding Kuang Chi Technologies or generate 121.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. Kuang Chi Technologies
Performance |
| Timeline |
| Eyebright Medical |
| Kuang Chi Technologies |
Eyebright Medical and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Kuang Chi
The main advantage of trading using opposite Eyebright Medical and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Eyebright Medical vs. Agricultural Bank of | Eyebright Medical vs. Industrial and Commercial | Eyebright Medical vs. Bank of China | Eyebright Medical vs. China Construction Bank |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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