Correlation Between Huasi Agricultural and Eastroc Beverage
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By analyzing existing cross correlation between Huasi Agricultural Development and Eastroc Beverage Group, you can compare the effects of market volatilities on Huasi Agricultural 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 Huasi Agricultural with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Eastroc Beverage.
Diversification Opportunities for Huasi Agricultural and Eastroc Beverage
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huasi and Eastroc is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Huasi Agricultural 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 Huasi Agricultural Development 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 Huasi Agricultural i.e., Huasi Agricultural and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Eastroc Beverage
Assuming the 90 days trading horizon Huasi Agricultural Development is expected to generate 1.52 times more return on investment than Eastroc Beverage. However, Huasi Agricultural is 1.52 times more volatile than Eastroc Beverage Group. It trades about 0.15 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.01 per unit of risk. If you would invest 381.00 in Huasi Agricultural Development on September 4, 2024 and sell it today you would earn a total of 65.00 from holding Huasi Agricultural Development or generate 17.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Eastroc Beverage Group
Performance |
| Timeline |
| Huasi Agricultural |
| Eastroc Beverage |
Huasi Agricultural and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Eastroc Beverage
The main advantage of trading using opposite Huasi Agricultural and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural 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.| Huasi Agricultural vs. Industrial and Commercial | Huasi Agricultural vs. Agricultural Bank of | Huasi Agricultural vs. China Construction Bank | Huasi Agricultural vs. Bank of China |
| Eastroc Beverage vs. Shaanxi Energy Investment | Eastroc Beverage vs. China Express Airlines | Eastroc Beverage vs. Wuhan Hvsen Biotechnology | Eastroc Beverage vs. Ningbo MedicalSystem Biotechnology |
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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