Correlation Between Eastroc Beverage and Shenzhen SDG
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By analyzing existing cross correlation between Eastroc Beverage Group and Shenzhen SDG Information, you can compare the effects of market volatilities on Eastroc Beverage and Shenzhen SDG 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 Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Shenzhen SDG.
Diversification Opportunities for Eastroc Beverage and Shenzhen SDG
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastroc and Shenzhen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information 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 Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Shenzhen SDG
Assuming the 90 days trading horizon Eastroc Beverage is expected to generate 3.55 times less return on investment than Shenzhen SDG. But when comparing it to its historical volatility, Eastroc Beverage Group is 1.88 times less risky than Shenzhen SDG. It trades about 0.03 of its potential returns per unit of risk. Shenzhen SDG Information is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 570.00 in Shenzhen SDG Information on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Shenzhen SDG Information or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Shenzhen SDG Information
Performance |
| Timeline |
| Eastroc Beverage |
| Shenzhen SDG Information |
Eastroc Beverage and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Shenzhen SDG
The main advantage of trading using opposite Eastroc Beverage and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| Eastroc Beverage vs. BeiGene | Eastroc Beverage vs. Kweichow Moutai Co | Eastroc Beverage vs. Beijing Roborock Technology | Eastroc Beverage vs. G bits Network Technology |
| Shenzhen SDG vs. Xiangtan Electrochemical Scientific | Shenzhen SDG vs. Eastroc Beverage Group | Shenzhen SDG vs. Gan Yuan Foods | Shenzhen SDG vs. Xiwang Foodstuffs Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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