Correlation Between Eastroc Beverage and Tieling Newcity
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastroc Beverage Group and Tieling Newcity Investment, you can compare the effects of market volatilities on Eastroc Beverage and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Tieling Newcity.
Diversification Opportunities for Eastroc Beverage and Tieling Newcity
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and Tieling is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Tieling Newcity go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Tieling Newcity
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.71 times more return on investment than Tieling Newcity. However, Eastroc Beverage Group is 1.41 times less risky than Tieling Newcity. It trades about 0.09 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.02 per unit of risk. If you would invest 13,220 in Eastroc Beverage Group on October 15, 2024 and sell it today you would earn a total of 14,476 from holding Eastroc Beverage Group or generate 109.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Tieling Newcity Investment
Performance |
| Timeline |
| Eastroc Beverage |
| Tieling Newcity Inve |
Eastroc Beverage and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Tieling Newcity
The main advantage of trading using opposite Eastroc Beverage and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| Eastroc Beverage vs. Hunan Mendale Hometextile | Eastroc Beverage vs. Qumei Furniture Group | Eastroc Beverage vs. DO Home Collection | Eastroc Beverage vs. Luolai Home Textile |
| Tieling Newcity vs. Lutian Machinery Co | Tieling Newcity vs. Shenzhen Zhongzhuang Construction | Tieling Newcity vs. Panda Dairy Corp | Tieling Newcity vs. Xingguang Agricultural Mach |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |