Correlation Between Eastern Communications and Saurer Intelligent
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By analyzing existing cross correlation between Eastern Communications Co and Saurer Intelligent Technology, you can compare the effects of market volatilities on Eastern Communications and Saurer Intelligent 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 Saurer Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Saurer Intelligent.
Diversification Opportunities for Eastern Communications and Saurer Intelligent
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Saurer is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and Saurer Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saurer Intelligent 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 Saurer Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saurer Intelligent has no effect on the direction of Eastern Communications i.e., Eastern Communications and Saurer Intelligent go up and down completely randomly.
Pair Corralation between Eastern Communications and Saurer Intelligent
Assuming the 90 days trading horizon Eastern Communications is expected to generate 2.79 times less return on investment than Saurer Intelligent. But when comparing it to its historical volatility, Eastern Communications Co is 1.43 times less risky than Saurer Intelligent. It trades about 0.05 of its potential returns per unit of risk. Saurer Intelligent Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 203.00 in Saurer Intelligent Technology on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Saurer Intelligent Technology or generate 7.39% 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. Saurer Intelligent Technology
Performance |
| Timeline |
| Eastern Communications |
| Saurer Intelligent |
Eastern Communications and Saurer Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Saurer Intelligent
The main advantage of trading using opposite Eastern Communications and Saurer Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, Saurer Intelligent 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 Saurer Intelligent will offset losses from the drop in Saurer Intelligent's long position.| Eastern Communications vs. Wuxi Chemical Equipment | Eastern Communications vs. Yangmei Chemical Co | Eastern Communications vs. Lander Sports Development | Eastern Communications vs. Jiangsu Jinling Sports |
| Saurer Intelligent vs. China Petroleum Chemical | Saurer Intelligent vs. PetroChina Co Ltd | Saurer Intelligent vs. China State Construction | Saurer Intelligent vs. China Railway Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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