Correlation Between Eastern Communications and Chengdu B
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By analyzing existing cross correlation between Eastern Communications Co and Chengdu B ray Media, you can compare the effects of market volatilities on Eastern Communications and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Chengdu B.
Diversification Opportunities for Eastern Communications and Chengdu B
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Chengdu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Eastern Communications i.e., Eastern Communications and Chengdu B go up and down completely randomly.
Pair Corralation between Eastern Communications and Chengdu B
Assuming the 90 days trading horizon Eastern Communications is expected to generate 2.43 times less return on investment than Chengdu B. But when comparing it to its historical volatility, Eastern Communications Co is 1.14 times less risky than Chengdu B. It trades about 0.11 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 448.00 in Chengdu B ray Media on September 4, 2024 and sell it today you would earn a total of 61.00 from holding Chengdu B ray Media or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eastern Communications Co vs. Chengdu B ray Media
Performance |
| Timeline |
| Eastern Communications |
| Chengdu B ray |
Eastern Communications and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Chengdu B
The main advantage of trading using opposite Eastern Communications and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| Eastern Communications vs. Industrial and Commercial | Eastern Communications vs. China Construction Bank | Eastern Communications vs. Bank of China | Eastern Communications vs. Agricultural Bank of |
| Chengdu B vs. Aofu Environmental Technology | Chengdu B vs. GreenTech Environmental Co | Chengdu B vs. Cofoe Medical Technology | Chengdu B vs. Cowealth Medical China |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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