Correlation Between Emdoor Information and Beijing Compass
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By analyzing existing cross correlation between Emdoor Information Co and Beijing Compass Technology, you can compare the effects of market volatilities on Emdoor Information and Beijing Compass 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 Emdoor Information with a short position of Beijing Compass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Beijing Compass.
Diversification Opportunities for Emdoor Information and Beijing Compass
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Emdoor and Beijing is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and Beijing Compass Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Compass Tech and Emdoor Information 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 Emdoor Information Co are associated (or correlated) with Beijing Compass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Compass Tech has no effect on the direction of Emdoor Information i.e., Emdoor Information and Beijing Compass go up and down completely randomly.
Pair Corralation between Emdoor Information and Beijing Compass
Assuming the 90 days trading horizon Emdoor Information is expected to generate 2.52 times less return on investment than Beijing Compass. But when comparing it to its historical volatility, Emdoor Information Co is 1.06 times less risky than Beijing Compass. It trades about 0.02 of its potential returns per unit of risk. Beijing Compass Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,790 in Beijing Compass Technology on September 26, 2024 and sell it today you would earn a total of 4,858 from holding Beijing Compass Technology or generate 101.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 94.98% |
Values | Daily Returns |
Emdoor Information Co vs. Beijing Compass Technology
Performance |
Timeline |
Emdoor Information |
Beijing Compass Tech |
Emdoor Information and Beijing Compass Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Emdoor Information and Beijing Compass
The main advantage of trading using opposite Emdoor Information and Beijing Compass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information position performs unexpectedly, Beijing Compass 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 Beijing Compass will offset losses from the drop in Beijing Compass' long position.Emdoor Information vs. Bank of China | Emdoor Information vs. Kweichow Moutai Co | Emdoor Information vs. PetroChina Co Ltd | Emdoor Information vs. Bank of Communications |
Beijing Compass vs. Talkweb Information System | Beijing Compass vs. ButOne Information Corp | Beijing Compass vs. Emdoor Information Co | Beijing Compass vs. Longmaster Information Tech |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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