Correlation Between Emdoor Information and Jiangsu Yueda
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By analyzing existing cross correlation between Emdoor Information Co and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Emdoor Information and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Jiangsu Yueda.
Diversification Opportunities for Emdoor Information and Jiangsu Yueda
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Emdoor and Jiangsu is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Emdoor Information i.e., Emdoor Information and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Emdoor Information and Jiangsu Yueda
Assuming the 90 days trading horizon Emdoor Information Co is expected to generate 1.9 times more return on investment than Jiangsu Yueda. However, Emdoor Information is 1.9 times more volatile than Jiangsu Yueda Investment. It trades about 0.14 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about -0.03 per unit of risk. If you would invest 4,712 in Emdoor Information Co on September 24, 2024 and sell it today you would earn a total of 559.00 from holding Emdoor Information Co or generate 11.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Emdoor Information Co vs. Jiangsu Yueda Investment
Performance |
Timeline |
Emdoor Information |
Jiangsu Yueda Investment |
Emdoor Information and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Emdoor Information and Jiangsu Yueda
The main advantage of trading using opposite Emdoor Information and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's 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 |
Jiangsu Yueda vs. Yonyou Auto Information | Jiangsu Yueda vs. StarPower Semiconductor | Jiangsu Yueda vs. Hygon Information Technology | Jiangsu Yueda 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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