Correlation Between Eastern Communications and Cowealth Medical
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By analyzing existing cross correlation between Eastern Communications Co and Cowealth Medical China, you can compare the effects of market volatilities on Eastern Communications and Cowealth Medical 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 Cowealth Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Cowealth Medical.
Diversification Opportunities for Eastern Communications and Cowealth Medical
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Cowealth is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and Cowealth Medical China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowealth Medical China 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 Cowealth Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowealth Medical China has no effect on the direction of Eastern Communications i.e., Eastern Communications and Cowealth Medical go up and down completely randomly.
Pair Corralation between Eastern Communications and Cowealth Medical
Assuming the 90 days trading horizon Eastern Communications Co is expected to generate 0.72 times more return on investment than Cowealth Medical. However, Eastern Communications Co is 1.39 times less risky than Cowealth Medical. It trades about 0.02 of its potential returns per unit of risk. Cowealth Medical China is currently generating about -0.02 per unit of risk. If you would invest 41.00 in Eastern Communications Co on September 3, 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Cowealth Medical China
Performance |
| Timeline |
| Eastern Communications |
| Cowealth Medical China |
Eastern Communications and Cowealth Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Cowealth Medical
The main advantage of trading using opposite Eastern Communications and Cowealth Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, Cowealth Medical 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 Cowealth Medical will offset losses from the drop in Cowealth Medical's long position.| Eastern Communications vs. China Sports Industry | Eastern Communications vs. Linzhou Heavy Machinery | Eastern Communications vs. Anhui Huilong Agricultural | Eastern Communications vs. Lutian Machinery Co |
| Cowealth Medical vs. Zoy Home Furnishing | Cowealth Medical vs. Mengtian Home Group | Cowealth Medical vs. Guangdong Silvere Sci | Cowealth Medical vs. Luolai Home Textile |
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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