Correlation Between Eastroc Beverage and Bohai Leasing
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By analyzing existing cross correlation between Eastroc Beverage Group and Bohai Leasing Co, you can compare the effects of market volatilities on Eastroc Beverage and Bohai Leasing 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 Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Bohai Leasing.
Diversification Opportunities for Eastroc Beverage and Bohai Leasing
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and Bohai is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing 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 Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Bohai Leasing go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Bohai Leasing
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to under-perform the Bohai Leasing. In addition to that, Eastroc Beverage is 1.77 times more volatile than Bohai Leasing Co. It trades about -0.02 of its total potential returns per unit of risk. Bohai Leasing Co is currently generating about -0.03 per unit of volatility. If you would invest 360.00 in Bohai Leasing Co on November 3, 2024 and sell it today you would lose (4.00) from holding Bohai Leasing Co or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Bohai Leasing Co
Performance |
| Timeline |
| Eastroc Beverage |
| Bohai Leasing |
Eastroc Beverage and Bohai Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Bohai Leasing
The main advantage of trading using opposite Eastroc Beverage and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.| Eastroc Beverage vs. Zhongshan Broad Ocean Motor | Eastroc Beverage vs. Ningbo Tech Bank Co | Eastroc Beverage vs. Qilu Bank Co | Eastroc Beverage vs. China Everbright Bank |
| Bohai Leasing vs. Linkage Software Co | Bohai Leasing vs. Zoje Resources Investment | Bohai Leasing vs. Beijing Baolande Software | Bohai Leasing vs. Chengdu Xingrong Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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