Correlation Between Eastern Communications and 360 Security
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By analyzing existing cross correlation between Eastern Communications Co and 360 Security Technology, you can compare the effects of market volatilities on Eastern Communications and 360 Security 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 360 Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and 360 Security.
Diversification Opportunities for Eastern Communications and 360 Security
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastern and 360 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and 360 Security Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Security Technology 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 360 Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Security Technology has no effect on the direction of Eastern Communications i.e., Eastern Communications and 360 Security go up and down completely randomly.
Pair Corralation between Eastern Communications and 360 Security
Assuming the 90 days trading horizon Eastern Communications is expected to generate 12.21 times less return on investment than 360 Security. But when comparing it to its historical volatility, Eastern Communications Co is 2.54 times less risky than 360 Security. It trades about 0.05 of its potential returns per unit of risk. 360 Security Technology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 967.00 in 360 Security Technology on September 1, 2024 and sell it today you would earn a total of 373.00 from holding 360 Security Technology or generate 38.57% 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. 360 Security Technology
Performance |
| Timeline |
| Eastern Communications |
| 360 Security Technology |
Eastern Communications and 360 Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and 360 Security
The main advantage of trading using opposite Eastern Communications and 360 Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, 360 Security 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 360 Security will offset losses from the drop in 360 Security'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 |
| 360 Security vs. Shenzhen AV Display Co | 360 Security vs. Zhejiang Zhengguang Industrial | 360 Security vs. Huafa Industrial Co | 360 Security vs. Bosera CMSK Industrial |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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