Correlation Between Eastroc Beverage and Zhongrun Resources
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By analyzing existing cross correlation between Eastroc Beverage Group and Zhongrun Resources Investment, you can compare the effects of market volatilities on Eastroc Beverage and Zhongrun Resources 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 Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Zhongrun Resources.
Diversification Opportunities for Eastroc Beverage and Zhongrun Resources
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eastroc and Zhongrun is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources 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 Zhongrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongrun Resources has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Zhongrun Resources
Assuming the 90 days trading horizon Eastroc Beverage is expected to generate 2.08 times less return on investment than Zhongrun Resources. But when comparing it to its historical volatility, Eastroc Beverage Group is 1.53 times less risky than Zhongrun Resources. It trades about 0.15 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 309.00 in Zhongrun Resources Investment on October 25, 2024 and sell it today you would earn a total of 104.00 from holding Zhongrun Resources Investment or generate 33.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Eastroc Beverage |
| Zhongrun Resources |
Eastroc Beverage and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Zhongrun Resources
The main advantage of trading using opposite Eastroc Beverage and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Zhongrun Resources 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 Zhongrun Resources will offset losses from the drop in Zhongrun Resources' long position.| Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Postal Savings Bank | Eastroc Beverage vs. Bank of Communications | Eastroc Beverage vs. China Merchants Bank |
| Zhongrun Resources vs. Fujian Anjoy Foods | Zhongrun Resources vs. Eastroc Beverage Group | Zhongrun Resources vs. Xiwang Foodstuffs Co | Zhongrun Resources vs. Malion New Materials |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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