Correlation Between Eastroc Beverage and Changchun High
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By analyzing existing cross correlation between Eastroc Beverage Group and Changchun High New, you can compare the effects of market volatilities on Eastroc Beverage and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Changchun High.
Diversification Opportunities for Eastroc Beverage and Changchun High
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastroc and Changchun is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Changchun High go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Changchun High
Assuming the 90 days trading horizon Eastroc Beverage is expected to generate 1.86 times less return on investment than Changchun High. But when comparing it to its historical volatility, Eastroc Beverage Group is 1.51 times less risky than Changchun High. It trades about 0.13 of its potential returns per unit of risk. Changchun High New is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 7,940 in Changchun High New on September 2, 2024 and sell it today you would earn a total of 2,782 from holding Changchun High New or generate 35.04% 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. Changchun High New
Performance |
| Timeline |
| Eastroc Beverage |
| Changchun High New |
Eastroc Beverage and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Changchun High
The main advantage of trading using opposite Eastroc Beverage and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High'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 |
| Changchun High vs. Xinjiang Tianrun Dairy | Changchun High vs. Eastern Air Logistics | Changchun High vs. Juewei Food Co | Changchun High vs. Zhengzhou Qianweiyangchu Food |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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