Correlation Between Eastern Communications and Xian International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastern Communications Co and Xian International Medical, you can compare the effects of market volatilities on Eastern Communications and Xian International 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 Eastern Communications with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Xian International.
Diversification Opportunities for Eastern Communications and Xian International
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Xian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and Eastern Communications 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 Eastern Communications Co are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Eastern Communications i.e., Eastern Communications and Xian International go up and down completely randomly.
Pair Corralation between Eastern Communications and Xian International
Assuming the 90 days trading horizon Eastern Communications Co is expected to generate 0.84 times more return on investment than Xian International. However, Eastern Communications Co is 1.19 times less risky than Xian International. It trades about 0.02 of its potential returns per unit of risk. Xian International Medical is currently generating about -0.04 per unit of risk. If you would invest 41.00 in Eastern Communications Co on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Eastern Communications Co or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Xian International Medical
Performance |
| Timeline |
| Eastern Communications |
| Xian International |
Eastern Communications and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Xian International
The main advantage of trading using opposite Eastern Communications and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Eastern Communications vs. Industrial and Commercial | Eastern Communications vs. Kweichow Moutai Co | Eastern Communications vs. Agricultural Bank of | Eastern Communications vs. China Mobile Limited |
| Xian International vs. Dalian Zeus Entertainment | Xian International vs. Shenzhen Kexin Communication | Xian International vs. Threes Company Media | Xian International vs. Eastern Communications 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |