Correlation Between Eit Environmental and Suzhou Dongshan
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By analyzing existing cross correlation between Eit Environmental Development and Suzhou Dongshan Precision, you can compare the effects of market volatilities on Eit Environmental and Suzhou Dongshan 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 Eit Environmental with a short position of Suzhou Dongshan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Suzhou Dongshan.
Diversification Opportunities for Eit Environmental and Suzhou Dongshan
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eit and Suzhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development and Suzhou Dongshan Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Dongshan Precision and Eit Environmental 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 Eit Environmental Development are associated (or correlated) with Suzhou Dongshan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Dongshan Precision has no effect on the direction of Eit Environmental i.e., Eit Environmental and Suzhou Dongshan go up and down completely randomly.
Pair Corralation between Eit Environmental and Suzhou Dongshan
Assuming the 90 days trading horizon Eit Environmental is expected to generate 1.16 times less return on investment than Suzhou Dongshan. But when comparing it to its historical volatility, Eit Environmental Development is 1.21 times less risky than Suzhou Dongshan. It trades about 0.03 of its potential returns per unit of risk. Suzhou Dongshan Precision is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,322 in Suzhou Dongshan Precision on September 26, 2024 and sell it today you would earn a total of 719.00 from holding Suzhou Dongshan Precision or generate 30.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.79% |
Values | Daily Returns |
Eit Environmental Development vs. Suzhou Dongshan Precision
Performance |
Timeline |
Eit Environmental |
Suzhou Dongshan Precision |
Eit Environmental and Suzhou Dongshan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eit Environmental and Suzhou Dongshan
The main advantage of trading using opposite Eit Environmental and Suzhou Dongshan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental position performs unexpectedly, Suzhou Dongshan 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 Suzhou Dongshan will offset losses from the drop in Suzhou Dongshan's long position.Eit Environmental vs. Ming Yang Smart | Eit Environmental vs. 159681 | Eit Environmental vs. 159005 | Eit Environmental vs. Loctek Ergonomic Technology |
Suzhou Dongshan vs. Aluminum Corp of | Suzhou Dongshan vs. Zhejiang Yayi Metal | Suzhou Dongshan vs. Hefei Metalforming Mach | Suzhou Dongshan vs. Sino Platinum Metals Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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