Correlation Between Tengda Construction and Eastroc Beverage
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By analyzing existing cross correlation between Tengda Construction Group and Eastroc Beverage Group, you can compare the effects of market volatilities on Tengda Construction 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 Tengda Construction with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tengda Construction and Eastroc Beverage.
Diversification Opportunities for Tengda Construction and Eastroc Beverage
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tengda and Eastroc is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tengda Construction Group and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Tengda Construction 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 Tengda Construction Group 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 Tengda Construction i.e., Tengda Construction and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Tengda Construction and Eastroc Beverage
Assuming the 90 days trading horizon Tengda Construction Group is expected to generate 1.21 times more return on investment than Eastroc Beverage. However, Tengda Construction is 1.21 times more volatile than Eastroc Beverage Group. It trades about 0.07 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 240.00 in Tengda Construction Group on September 4, 2024 and sell it today you would earn a total of 14.00 from holding Tengda Construction Group or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tengda Construction Group vs. Eastroc Beverage Group
Performance |
| Timeline |
| Tengda Construction |
| Eastroc Beverage |
Tengda Construction and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tengda Construction and Eastroc Beverage
The main advantage of trading using opposite Tengda Construction and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tengda Construction 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.| Tengda Construction vs. Zhejiang Kingland Pipeline | Tengda Construction vs. Longmaster Information Tech | Tengda Construction vs. Yonyou Auto Information | Tengda Construction vs. Keda Clean Energy |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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