Correlation Between Eastroc Beverage and Zhejiang Dahua
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By analyzing existing cross correlation between Eastroc Beverage Group and Zhejiang Dahua Technology, you can compare the effects of market volatilities on Eastroc Beverage and Zhejiang Dahua 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 Zhejiang Dahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Zhejiang Dahua.
Diversification Opportunities for Eastroc Beverage and Zhejiang Dahua
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and Zhejiang is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Zhejiang Dahua Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Dahua Technology 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 Zhejiang Dahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Dahua Technology has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Zhejiang Dahua go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Zhejiang Dahua
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.66 times more return on investment than Zhejiang Dahua. However, Eastroc Beverage Group is 1.51 times less risky than Zhejiang Dahua. It trades about 0.08 of its potential returns per unit of risk. Zhejiang Dahua Technology is currently generating about 0.03 per unit of risk. If you would invest 13,220 in Eastroc Beverage Group on October 16, 2024 and sell it today you would earn a total of 13,481 from holding Eastroc Beverage Group or generate 101.97% 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. Zhejiang Dahua Technology
Performance |
| Timeline |
| Eastroc Beverage |
| Zhejiang Dahua Technology |
Eastroc Beverage and Zhejiang Dahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Zhejiang Dahua
The main advantage of trading using opposite Eastroc Beverage and Zhejiang Dahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Zhejiang Dahua 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 Zhejiang Dahua will offset losses from the drop in Zhejiang Dahua's long position.| Eastroc Beverage vs. Easyhome New Retail | Eastroc Beverage vs. Guizhou BroadcastingTV Info | Eastroc Beverage vs. Shaanxi Broadcast TV | Eastroc Beverage vs. Sunny Loan Top |
| Zhejiang Dahua vs. Will Semiconductor Co | Zhejiang Dahua vs. Eastroc Beverage Group | Zhejiang Dahua vs. Jinling Hotel Corp | Zhejiang Dahua vs. Nexchip Semiconductor Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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