Correlation Between Eyebright Medical and Guangzhou Tinci
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By analyzing existing cross correlation between Eyebright Medical Technology and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Eyebright Medical and Guangzhou Tinci 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 Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Guangzhou Tinci.
Diversification Opportunities for Eyebright Medical and Guangzhou Tinci
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eyebright and Guangzhou is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials 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 Guangzhou Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Eyebright Medical i.e., Eyebright Medical and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Eyebright Medical and Guangzhou Tinci
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to generate 1.12 times more return on investment than Guangzhou Tinci. However, Eyebright Medical is 1.12 times more volatile than Guangzhou Tinci Materials. It trades about -0.03 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about -0.05 per unit of risk. If you would invest 22,621 in Eyebright Medical Technology on November 2, 2024 and sell it today you would lose (13,142) from holding Eyebright Medical Technology or give up 58.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Eyebright Medical |
| Guangzhou Tinci Materials |
Eyebright Medical and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Guangzhou Tinci
The main advantage of trading using opposite Eyebright Medical and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical position performs unexpectedly, Guangzhou Tinci 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 Guangzhou Tinci will offset losses from the drop in Guangzhou Tinci's long position.| Eyebright Medical vs. HeBei Jinniu Chemical | Eyebright Medical vs. Daoming OpticsChemical Co | Eyebright Medical vs. Xiangpiaopiao Food Co | Eyebright Medical vs. Youyou Foods Co |
| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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