Correlation Between Eyebright Medical and Aba Chemicals
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By analyzing existing cross correlation between Eyebright Medical Technology and Aba Chemicals Corp, you can compare the effects of market volatilities on Eyebright Medical and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Aba Chemicals.
Diversification Opportunities for Eyebright Medical and Aba Chemicals
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eyebright and Aba is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Eyebright Medical i.e., Eyebright Medical and Aba Chemicals go up and down completely randomly.
Pair Corralation between Eyebright Medical and Aba Chemicals
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to generate 1.12 times more return on investment than Aba Chemicals. However, Eyebright Medical is 1.12 times more volatile than Aba Chemicals Corp. It trades about -0.04 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.63 per unit of risk. If you would invest 9,779 in Eyebright Medical Technology on October 13, 2024 and sell it today you would lose (231.00) from holding Eyebright Medical Technology or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. Aba Chemicals Corp
Performance |
| Timeline |
| Eyebright Medical |
| Aba Chemicals Corp |
Eyebright Medical and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Aba Chemicals
The main advantage of trading using opposite Eyebright Medical and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Eyebright Medical vs. Holitech Technology Co | Eyebright Medical vs. Zotye Automobile Co | Eyebright Medical vs. Bus Online Co | Eyebright Medical vs. Cultural Investment Holdings |
| Aba Chemicals vs. Holitech Technology Co | Aba Chemicals vs. Hangzhou Gisway Information | Aba Chemicals vs. Eyebright Medical Technology | Aba Chemicals vs. Jinhe Biotechnology 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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