Correlation Between Eastern Communications and V V
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By analyzing existing cross correlation between Eastern Communications Co and V V Food, you can compare the effects of market volatilities on Eastern Communications and V V 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 V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and V V.
Diversification Opportunities for Eastern Communications and V V
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and 600300 is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food 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 V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Eastern Communications i.e., Eastern Communications and V V go up and down completely randomly.
Pair Corralation between Eastern Communications and V V
Assuming the 90 days trading horizon Eastern Communications Co is expected to generate 1.31 times more return on investment than V V. However, Eastern Communications is 1.31 times more volatile than V V Food. It trades about 0.02 of its potential returns per unit of risk. V V Food is currently generating about 0.0 per unit of risk. If you would invest 40.00 in Eastern Communications Co on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Eastern Communications Co or generate 7.5% 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. V V Food
Performance |
| Timeline |
| Eastern Communications |
| V V Food |
Eastern Communications and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and V V
The main advantage of trading using opposite Eastern Communications and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.The idea behind Eastern Communications Co and V V Food 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.
| V V vs. Guangzhou Haige Communications | V V vs. Eastern Communications Co | V V vs. Orinko Advanced Plastics | V V vs. Dr Peng Telecom |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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