Correlation Between Eastroc Beverage and China Vanke
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastroc Beverage Group and China Vanke Co, you can compare the effects of market volatilities on Eastroc Beverage and China Vanke 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 Eastroc Beverage with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and China Vanke.
Diversification Opportunities for Eastroc Beverage and China Vanke
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastroc and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Eastroc Beverage 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 Eastroc Beverage Group are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and China Vanke go up and down completely randomly.
Pair Corralation between Eastroc Beverage and China Vanke
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.69 times more return on investment than China Vanke. However, Eastroc Beverage Group is 1.44 times less risky than China Vanke. It trades about 0.09 of its potential returns per unit of risk. China Vanke Co is currently generating about -0.03 per unit of risk. If you would invest 13,588 in Eastroc Beverage Group on September 12, 2024 and sell it today you would earn a total of 8,807 from holding Eastroc Beverage Group or generate 64.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. China Vanke Co
Performance |
| Timeline |
| Eastroc Beverage |
| China Vanke |
Eastroc Beverage and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and China Vanke
The main advantage of trading using opposite Eastroc Beverage and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, China Vanke 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 China Vanke will offset losses from the drop in China Vanke's long position.| Eastroc Beverage vs. China Petroleum Chemical | Eastroc Beverage vs. PetroChina Co Ltd | Eastroc Beverage vs. China State Construction | Eastroc Beverage vs. China Railway Group |
| China Vanke vs. Sichuan Jinshi Technology | China Vanke vs. Xinjiang Communications Construction | China Vanke vs. Linewell Software Co | China Vanke vs. Tianjin Hi Tech Development |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |