Correlation Between Eyebright Medical and Anhui Xinhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eyebright Medical Technology and Anhui Xinhua Media, you can compare the effects of market volatilities on Eyebright Medical and Anhui Xinhua 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 Anhui Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Anhui Xinhua.
Diversification Opportunities for Eyebright Medical and Anhui Xinhua
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eyebright and Anhui is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and Anhui Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Xinhua Media 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 Anhui Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Xinhua Media has no effect on the direction of Eyebright Medical i.e., Eyebright Medical and Anhui Xinhua go up and down completely randomly.
Pair Corralation between Eyebright Medical and Anhui Xinhua
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to generate 1.2 times more return on investment than Anhui Xinhua. However, Eyebright Medical is 1.2 times more volatile than Anhui Xinhua Media. It trades about 0.07 of its potential returns per unit of risk. Anhui Xinhua Media is currently generating about -0.3 per unit of risk. If you would invest 9,295 in Eyebright Medical Technology on October 17, 2024 and sell it today you would earn a total of 288.00 from holding Eyebright Medical Technology or generate 3.1% 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. Anhui Xinhua Media
Performance |
| Timeline |
| Eyebright Medical |
| Anhui Xinhua Media |
Eyebright Medical and Anhui Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Anhui Xinhua
The main advantage of trading using opposite Eyebright Medical and Anhui Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical position performs unexpectedly, Anhui Xinhua 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 Anhui Xinhua will offset losses from the drop in Anhui Xinhua's long position.The idea behind Eyebright Medical Technology and Anhui Xinhua Media 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.
| Anhui Xinhua vs. Quectel Wireless Solutions | Anhui Xinhua vs. Fiberhome Telecommunication Technologies | Anhui Xinhua vs. CareRay Digital Medical | Anhui Xinhua vs. Eyebright Medical Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |