Correlation Between Eoptolink Technology and Jiangsu Broadcasting

Can any of the company-specific risk be diversified away by investing in both Eoptolink Technology and Jiangsu Broadcasting 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 Eoptolink Technology and Jiangsu Broadcasting into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eoptolink Technology and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Eoptolink Technology and Jiangsu Broadcasting 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 Eoptolink Technology with a short position of Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eoptolink Technology and Jiangsu Broadcasting.

Diversification Opportunities for Eoptolink Technology and Jiangsu Broadcasting

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Correlation Coefficient

Eoptolink Technology  Jiangsu Broadcasting

Pay attention - limited upside

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

Pair Corralation between Eoptolink Technology and Jiangsu Broadcasting

If you would invest (100.00) in Eoptolink Technology on October 7, 2024 and sell it today you would earn a total of  100.00  from holding Eoptolink Technology or generate -100.0% return on investment over 90 days.

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

Eoptolink Technology  vs.  Jiangsu Broadcasting Cable

Eoptolink Technology

Risk-Adjusted Performance

0 of 100

Very Weak

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

Jiangsu Broadcasting

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jiangsu Broadcasting Cable has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Eoptolink Technology and Jiangsu Broadcasting

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

The idea behind Eoptolink Technology and Jiangsu Broadcasting Cable 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.