Correlation Between Eastroc Beverage and City Development
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By analyzing existing cross correlation between Eastroc Beverage Group and City Development Environment, you can compare the effects of market volatilities on Eastroc Beverage and City Development 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 City Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and City Development.
Diversification Opportunities for Eastroc Beverage and City Development
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eastroc and City is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and City Development Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Development Env 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 City Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Development Env has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and City Development go up and down completely randomly.
Pair Corralation between Eastroc Beverage and City Development
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.98 times more return on investment than City Development. However, Eastroc Beverage Group is 1.02 times less risky than City Development. It trades about 0.07 of its potential returns per unit of risk. City Development Environment is currently generating about 0.03 per unit of risk. If you would invest 13,214 in Eastroc Beverage Group on October 27, 2024 and sell it today you would earn a total of 10,899 from holding Eastroc Beverage Group or generate 82.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. City Development Environment
Performance |
| Timeline |
| Eastroc Beverage |
| City Development Env |
Eastroc Beverage and City Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and City Development
The main advantage of trading using opposite Eastroc Beverage and City Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, City Development 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 City Development will offset losses from the drop in City Development's long position.| Eastroc Beverage vs. Southern PublishingMedia Co | Eastroc Beverage vs. Changjiang Publishing Media | Eastroc Beverage vs. Touchstone International Medical | Eastroc Beverage vs. Winner Medical Co |
| City Development vs. Sinofibers Technology Co | City Development vs. Maxvision Technology Corp | City Development vs. Sportsoul Co Ltd | City Development vs. Holitech Technology 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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