Correlation Between Guilin Seamild and Eastroc Beverage
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By analyzing existing cross correlation between Guilin Seamild Foods and Eastroc Beverage Group, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Eastroc Beverage.
Diversification Opportunities for Guilin Seamild and Eastroc Beverage
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guilin and Eastroc is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Guilin Seamild and Eastroc Beverage
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to under-perform the Eastroc Beverage. But the stock apears to be less risky and, when comparing its historical volatility, Guilin Seamild Foods is 1.07 times less risky than Eastroc Beverage. The stock trades about -0.08 of its potential returns per unit of risk. The Eastroc Beverage Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 24,390 in Eastroc Beverage Group on October 26, 2024 and sell it today you would lose (111.00) from holding Eastroc Beverage Group or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Eastroc Beverage Group
Performance |
| Timeline |
| Guilin Seamild Foods |
| Eastroc Beverage |
Guilin Seamild and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Eastroc Beverage
The main advantage of trading using opposite Guilin Seamild and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Kweichow Moutai Co | Guilin Seamild vs. Contemporary Amperex Technology | Guilin Seamild vs. G bits Network Technology | Guilin Seamild vs. Beijing Roborock Technology |
| Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Industrial and Commercial | Eastroc Beverage vs. Bank of China | Eastroc Beverage vs. China Construction 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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