Correlation Between Guangdong Jingyi and Eastroc Beverage
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Eastroc Beverage Group, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Eastroc Beverage.
Diversification Opportunities for Guangdong Jingyi and Eastroc Beverage
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Eastroc is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Eastroc Beverage
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 9.8 times less return on investment than Eastroc Beverage. In addition to that, Guangdong Jingyi is 1.38 times more volatile than Eastroc Beverage Group. It trades about 0.01 of its total potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.07 per unit of volatility. If you would invest 13,427 in Eastroc Beverage Group on October 25, 2024 and sell it today you would earn a total of 10,854 from holding Eastroc Beverage Group or generate 80.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Eastroc Beverage Group
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Eastroc Beverage |
Guangdong Jingyi and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Eastroc Beverage
The main advantage of trading using opposite Guangdong Jingyi and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co |
| Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Postal Savings Bank | Eastroc Beverage vs. Bank of Communications | Eastroc Beverage vs. China Merchants Bank |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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