Correlation Between Eastern Communications and GRIPM Advanced
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By analyzing existing cross correlation between Eastern Communications Co and GRIPM Advanced Materials, you can compare the effects of market volatilities on Eastern Communications and GRIPM Advanced 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and GRIPM Advanced.
Diversification Opportunities for Eastern Communications and GRIPM Advanced
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastern and GRIPM is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced Materials 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Eastern Communications i.e., Eastern Communications and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Eastern Communications and GRIPM Advanced
Assuming the 90 days trading horizon Eastern Communications is expected to generate 3.62 times less return on investment than GRIPM Advanced. But when comparing it to its historical volatility, Eastern Communications Co is 1.48 times less risky than GRIPM Advanced. It trades about 0.01 of its potential returns per unit of risk. GRIPM Advanced Materials is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,946 in GRIPM Advanced Materials on August 31, 2024 and sell it today you would earn a total of 165.00 from holding GRIPM Advanced Materials or generate 5.6% 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. GRIPM Advanced Materials
Performance |
| Timeline |
| Eastern Communications |
| GRIPM Advanced Materials |
Eastern Communications and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and GRIPM Advanced
The main advantage of trading using opposite Eastern Communications and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced's long position.| Eastern Communications vs. Kweichow Moutai Co | Eastern Communications vs. NAURA Technology Group | Eastern Communications vs. APT Medical | Eastern Communications vs. Contemporary Amperex Technology |
| GRIPM Advanced vs. Zijin Mining Group | GRIPM Advanced vs. Baoshan Iron Steel | GRIPM Advanced vs. Rongsheng Petrochemical Co | GRIPM Advanced vs. Hoshine Silicon Ind |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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