Correlation Between Xinjiang Baodi and Eastroc Beverage
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Eastroc Beverage Group, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Eastroc Beverage.
Diversification Opportunities for Xinjiang Baodi and Eastroc Beverage
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinjiang and Eastroc is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Eastroc Beverage
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 3.35 times less return on investment than Eastroc Beverage. In addition to that, Xinjiang Baodi is 1.41 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 0.08 per unit of volatility. If you would invest 12,943 in Eastroc Beverage Group on October 30, 2024 and sell it today you would earn a total of 11,372 from holding Eastroc Beverage Group or generate 87.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.43% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Eastroc Beverage Group
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Eastroc Beverage |
Xinjiang Baodi and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Eastroc Beverage
The main advantage of trading using opposite Xinjiang Baodi and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Haima Automobile Group | Xinjiang Baodi vs. Nuode Investment Co | Xinjiang Baodi vs. Zoje Resources Investment | Xinjiang Baodi vs. Jiangsu Xinri E Vehicle |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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