Correlation Between Hunan Mendale and Eastroc Beverage
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Eastroc Beverage Group, you can compare the effects of market volatilities on Hunan Mendale 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 Hunan Mendale with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Eastroc Beverage.
Diversification Opportunities for Hunan Mendale and Eastroc Beverage
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Eastroc is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Hunan Mendale 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 Hunan Mendale Hometextile 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 Hunan Mendale i.e., Hunan Mendale and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Hunan Mendale and Eastroc Beverage
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to under-perform the Eastroc Beverage. In addition to that, Hunan Mendale is 1.6 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 0.09 per unit of volatility. If you would invest 13,220 in Eastroc Beverage Group on October 14, 2024 and sell it today you would earn a total of 14,476 from holding Eastroc Beverage Group or generate 109.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Eastroc Beverage Group
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Eastroc Beverage |
Hunan Mendale and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Eastroc Beverage
The main advantage of trading using opposite Hunan Mendale and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale 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.| Hunan Mendale vs. BYD Co Ltd | Hunan Mendale vs. China Mobile Limited | Hunan Mendale vs. Agricultural Bank of | Hunan Mendale vs. Industrial and Commercial |
| Eastroc Beverage vs. Hunan Mendale Hometextile | Eastroc Beverage vs. Qumei Furniture Group | Eastroc Beverage vs. DO Home Collection | Eastroc Beverage vs. Luolai Home Textile |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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