Correlation Between Jiahe Foods and Eastroc Beverage
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By analyzing existing cross correlation between Jiahe Foods Industry and Eastroc Beverage Group, you can compare the effects of market volatilities on Jiahe Foods 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 Jiahe Foods with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and Eastroc Beverage.
Diversification Opportunities for Jiahe Foods and Eastroc Beverage
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiahe and Eastroc is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Jiahe Foods 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 Jiahe Foods Industry 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 Jiahe Foods i.e., Jiahe Foods and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Jiahe Foods and Eastroc Beverage
Assuming the 90 days trading horizon Jiahe Foods is expected to generate 28.73 times less return on investment than Eastroc Beverage. In addition to that, Jiahe Foods is 1.49 times more volatile than Eastroc Beverage Group. It trades about 0.0 of its total potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.13 per unit of volatility. If you would invest 13,597 in Eastroc Beverage Group on September 14, 2024 and sell it today you would earn a total of 11,530 from holding Eastroc Beverage Group or generate 84.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Jiahe Foods Industry vs. Eastroc Beverage Group
Performance |
| Timeline |
| Jiahe Foods Industry |
| Eastroc Beverage |
Jiahe Foods and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and Eastroc Beverage
The main advantage of trading using opposite Jiahe Foods and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods 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.| Jiahe Foods vs. Nanjing Putian Telecommunications | Jiahe Foods vs. Tianjin Realty Development | Jiahe Foods vs. Kangyue Technology Co | Jiahe Foods vs. Shenzhen Hifuture Electric |
| Eastroc Beverage vs. Jilin Jlu Communication | Eastroc Beverage vs. Kuang Chi Technologies | Eastroc Beverage vs. Guangzhou Seagull Kitchen | Eastroc Beverage vs. Anhui Deli Household |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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