Correlation Between Changsha Jingjia and Eastroc Beverage
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By analyzing existing cross correlation between Changsha Jingjia Microelectronics and Eastroc Beverage Group, you can compare the effects of market volatilities on Changsha Jingjia 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 Changsha Jingjia with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changsha Jingjia and Eastroc Beverage.
Diversification Opportunities for Changsha Jingjia and Eastroc Beverage
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Changsha and Eastroc is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Changsha Jingjia Microelectron and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Changsha Jingjia 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 Changsha Jingjia Microelectronics 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 Changsha Jingjia i.e., Changsha Jingjia and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Changsha Jingjia and Eastroc Beverage
Assuming the 90 days trading horizon Changsha Jingjia Microelectronics is expected to generate 1.45 times more return on investment than Eastroc Beverage. However, Changsha Jingjia is 1.45 times more volatile than Eastroc Beverage Group. It trades about 0.03 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about -0.11 per unit of risk. If you would invest 8,990 in Changsha Jingjia Microelectronics on October 18, 2024 and sell it today you would earn a total of 59.00 from holding Changsha Jingjia Microelectronics or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changsha Jingjia Microelectron vs. Eastroc Beverage Group
Performance |
| Timeline |
| Changsha Jingjia Mic |
| Eastroc Beverage |
Changsha Jingjia and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changsha Jingjia and Eastroc Beverage
The main advantage of trading using opposite Changsha Jingjia and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changsha Jingjia 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.| Changsha Jingjia vs. Eastroc Beverage Group | Changsha Jingjia vs. Tsingtao Brewery Co | Changsha Jingjia vs. Xiamen Jihong Package | Changsha Jingjia vs. Great Sun Foods Co |
| Eastroc Beverage vs. Harbin Hatou Investment | Eastroc Beverage vs. Chongqing Brewery Co | Eastroc Beverage vs. Easyhome New Retail | Eastroc Beverage vs. Shanghai Yaoji Playing |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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