Correlation Between Shenzhen Aisidi and Emdoor Information

Can any of the company-specific risk be diversified away by investing in both Shenzhen Aisidi and Emdoor Information at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shenzhen Aisidi and Emdoor Information into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shenzhen Aisidi Co and Emdoor Information Co, you can compare the effects of market volatilities on Shenzhen Aisidi and Emdoor Information 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 Shenzhen Aisidi with a short position of Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Aisidi and Emdoor Information.

Diversification Opportunities for Shenzhen Aisidi and Emdoor Information

0.0

Correlation Coefficient

Shenzhen Aisidi  Emdoor Information

Pay attention - limited upside

The 3 months correlation between Shenzhen and Emdoor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Aisidi Co and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information and Shenzhen Aisidi 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 Shenzhen Aisidi Co are associated (or correlated) with Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of Shenzhen Aisidi i.e., Shenzhen Aisidi and Emdoor Information go up and down completely randomly.

Pair Corralation between Shenzhen Aisidi and Emdoor Information

If you would invest  4,110  in Emdoor Information Co on October 9, 2024 and sell it today you would earn a total of  849.00  from holding Emdoor Information Co or generate 20.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Shenzhen Aisidi Co  vs.  Emdoor Information Co

Shenzhen Aisidi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shenzhen Aisidi Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Shenzhen Aisidi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Emdoor Information

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Emdoor Information Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Emdoor Information sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shenzhen Aisidi and Emdoor Information

The main advantage of trading using opposite Shenzhen Aisidi and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Aisidi position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.

The idea behind Shenzhen Aisidi Co and Emdoor Information Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.