Correlation Between Shandong Homey and Eastroc Beverage
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By analyzing existing cross correlation between Shandong Homey Aquatic and Eastroc Beverage Group, you can compare the effects of market volatilities on Shandong Homey 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 Shandong Homey with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Eastroc Beverage.
Diversification Opportunities for Shandong Homey and Eastroc Beverage
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and Eastroc is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Shandong Homey 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 Shandong Homey Aquatic 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 Shandong Homey i.e., Shandong Homey and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Shandong Homey and Eastroc Beverage
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to under-perform the Eastroc Beverage. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Homey Aquatic is 1.06 times less risky than Eastroc Beverage. The stock trades about -0.18 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 24,386 in Eastroc Beverage Group on October 28, 2024 and sell it today you would lose (273.00) from holding Eastroc Beverage Group or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. Eastroc Beverage Group
Performance |
| Timeline |
| Shandong Homey Aquatic |
| Eastroc Beverage |
Shandong Homey and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and Eastroc Beverage
The main advantage of trading using opposite Shandong Homey and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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.| Shandong Homey vs. Kweichow Moutai Co | Shandong Homey vs. Contemporary Amperex Technology | Shandong Homey vs. G bits Network Technology | Shandong Homey 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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