Correlation Between Emdoor Information and Rongsheng Petrochemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Emdoor Information Co and Rongsheng Petrochemical Co, you can compare the effects of market volatilities on Emdoor Information and Rongsheng Petrochemical 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 Rongsheng Petrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Rongsheng Petrochemical.
Diversification Opportunities for Emdoor Information and Rongsheng Petrochemical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Emdoor and Rongsheng is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and Rongsheng Petrochemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rongsheng Petrochemical 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 Rongsheng Petrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rongsheng Petrochemical has no effect on the direction of Emdoor Information i.e., Emdoor Information and Rongsheng Petrochemical go up and down completely randomly.
Pair Corralation between Emdoor Information and Rongsheng Petrochemical
Assuming the 90 days trading horizon Emdoor Information Co is expected to generate 1.52 times more return on investment than Rongsheng Petrochemical. However, Emdoor Information is 1.52 times more volatile than Rongsheng Petrochemical Co. It trades about 0.25 of its potential returns per unit of risk. Rongsheng Petrochemical Co is currently generating about 0.15 per unit of risk. If you would invest 3,345 in Emdoor Information Co on September 14, 2024 and sell it today you would earn a total of 2,005 from holding Emdoor Information Co or generate 59.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Emdoor Information Co vs. Rongsheng Petrochemical Co
Performance |
Timeline |
Emdoor Information |
Rongsheng Petrochemical |
Emdoor Information and Rongsheng Petrochemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Emdoor Information and Rongsheng Petrochemical
The main advantage of trading using opposite Emdoor Information and Rongsheng Petrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information position performs unexpectedly, Rongsheng Petrochemical 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 Rongsheng Petrochemical will offset losses from the drop in Rongsheng Petrochemical's long position.Emdoor Information vs. Biwin Storage Technology | Emdoor Information vs. PetroChina Co Ltd | Emdoor Information vs. Industrial and Commercial | Emdoor Information vs. China Construction Bank |
Rongsheng Petrochemical vs. Zijin Mining Group | Rongsheng Petrochemical vs. Wanhua Chemical Group | Rongsheng Petrochemical vs. Baoshan Iron Steel | Rongsheng Petrochemical vs. Shandong Gold Mining |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |