Correlation Between Eastern Communications and Dirui Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastern Communications Co and Dirui Industrial Co, you can compare the effects of market volatilities on Eastern Communications and Dirui Industrial 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 Dirui Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Dirui Industrial.
Diversification Opportunities for Eastern Communications and Dirui Industrial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastern and Dirui is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and Dirui Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dirui Industrial 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 Dirui Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dirui Industrial has no effect on the direction of Eastern Communications i.e., Eastern Communications and Dirui Industrial go up and down completely randomly.
Pair Corralation between Eastern Communications and Dirui Industrial
Assuming the 90 days trading horizon Eastern Communications Co is expected to generate 0.7 times more return on investment than Dirui Industrial. However, Eastern Communications Co is 1.43 times less risky than Dirui Industrial. It trades about 0.02 of its potential returns per unit of risk. Dirui Industrial Co is currently generating about -0.01 per unit of risk. If you would invest 41.00 in Eastern Communications Co on September 5, 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Dirui Industrial Co
Performance |
| Timeline |
| Eastern Communications |
| Dirui Industrial |
Eastern Communications and Dirui Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Dirui Industrial
The main advantage of trading using opposite Eastern Communications and Dirui Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, Dirui Industrial 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 Dirui Industrial will offset losses from the drop in Dirui Industrial's long position.| Eastern Communications vs. Jiaozuo Wanfang Aluminum | Eastern Communications vs. ZYF Lopsking Aluminum | Eastern Communications vs. Datang HuaYin Electric | Eastern Communications vs. Guangdong Jingyi Metal |
| Dirui Industrial vs. Shenzhen Bioeasy Biotechnology | Dirui Industrial vs. Bloomage Biotechnology Corp | Dirui Industrial vs. Wintao Communications Co | Dirui Industrial 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |