Correlation Between Sunny Loan and Eastroc Beverage
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By analyzing existing cross correlation between Sunny Loan Top and Eastroc Beverage Group, you can compare the effects of market volatilities on Sunny Loan 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 Sunny Loan with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Eastroc Beverage.
Diversification Opportunities for Sunny Loan and Eastroc Beverage
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and Eastroc is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Sunny Loan 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 Sunny Loan Top 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 Sunny Loan i.e., Sunny Loan and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Sunny Loan and Eastroc Beverage
Assuming the 90 days trading horizon Sunny Loan is expected to generate 1.52 times less return on investment than Eastroc Beverage. In addition to that, Sunny Loan is 1.6 times more volatile than Eastroc Beverage Group. It trades about 0.03 of its total potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.08 per unit of volatility. If you would invest 13,220 in Eastroc Beverage Group on October 16, 2024 and sell it today you would earn a total of 13,481 from holding Eastroc Beverage Group or generate 101.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Eastroc Beverage Group
Performance |
| Timeline |
| Sunny Loan Top |
| Eastroc Beverage |
Sunny Loan and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Eastroc Beverage
The main advantage of trading using opposite Sunny Loan and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan 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.| Sunny Loan vs. Shaanxi Broadcast TV | Sunny Loan vs. Chengdu Xinzhu RoadBridge | Sunny Loan vs. Hunan TV Broadcast | Sunny Loan vs. Duzhe Publishing Media |
| Eastroc Beverage vs. Easyhome New Retail | Eastroc Beverage vs. Guizhou BroadcastingTV Info | Eastroc Beverage vs. Shaanxi Broadcast TV | Eastroc Beverage vs. Sunny Loan Top |
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