Correlation Between Guangdong Jinma and Eastroc Beverage
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Eastroc Beverage Group, you can compare the effects of market volatilities on Guangdong Jinma 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 Jinma with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Eastroc Beverage.
Diversification Opportunities for Guangdong Jinma and Eastroc Beverage
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Eastroc is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment 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 Jinma 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 Jinma Entertainment 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 Jinma i.e., Guangdong Jinma and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Eastroc Beverage
Assuming the 90 days trading horizon Guangdong Jinma is expected to generate 8.31 times less return on investment than Eastroc Beverage. In addition to that, Guangdong Jinma is 1.1 times more volatile than Eastroc Beverage Group. It trades about 0.02 of its total potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.14 per unit of volatility. If you would invest 21,383 in Eastroc Beverage Group on October 30, 2024 and sell it today you would earn a total of 2,932 from holding Eastroc Beverage Group or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Eastroc Beverage Group
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Eastroc Beverage |
Guangdong Jinma and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Eastroc Beverage
The main advantage of trading using opposite Guangdong Jinma and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma 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 Jinma vs. Ming Yang Smart | Guangdong Jinma vs. 159681 | Guangdong Jinma vs. 159005 | Guangdong Jinma vs. Loctek Ergonomic 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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