Correlation Between Beijing Shunxin and Eastroc Beverage
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By analyzing existing cross correlation between Beijing Shunxin Agriculture and Eastroc Beverage Group, you can compare the effects of market volatilities on Beijing Shunxin and Eastroc Beverage 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 Beijing Shunxin with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shunxin and Eastroc Beverage.
Diversification Opportunities for Beijing Shunxin and Eastroc Beverage
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Eastroc is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shunxin Agriculture and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Beijing Shunxin 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 Beijing Shunxin Agriculture are associated (or correlated) with Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Beijing Shunxin i.e., Beijing Shunxin and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Beijing Shunxin and Eastroc Beverage
Assuming the 90 days trading horizon Beijing Shunxin Agriculture is expected to under-perform the Eastroc Beverage. In addition to that, Beijing Shunxin is 1.53 times more volatile than Eastroc Beverage Group. It trades about -0.3 of its total potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.36 per unit of volatility. If you would invest 24,250 in Eastroc Beverage Group on October 12, 2024 and sell it today you would earn a total of 2,890 from holding Eastroc Beverage Group or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shunxin Agriculture vs. Eastroc Beverage Group
Performance |
| Timeline |
| Beijing Shunxin Agri |
| Eastroc Beverage |
Beijing Shunxin and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shunxin and Eastroc Beverage
The main advantage of trading using opposite Beijing Shunxin and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shunxin position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.| Beijing Shunxin vs. Sunny Loan Top | Beijing Shunxin vs. HUAQIN TECHNOLOGY LTD | Beijing Shunxin vs. Changjiang Publishing Media | Beijing Shunxin vs. Thinkingdom Media Group |
| Eastroc Beverage vs. Quectel Wireless Solutions | Eastroc Beverage vs. Henan Shuanghui Investment | Eastroc Beverage vs. Tieling Newcity Investment | Eastroc Beverage vs. Dongfeng Automobile 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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