Correlation Between Eastroc Beverage and Guangdong Jingyi
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By analyzing existing cross correlation between Eastroc Beverage Group and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Eastroc Beverage and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Guangdong Jingyi.
Diversification Opportunities for Eastroc Beverage and Guangdong Jingyi
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastroc and Guangdong is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Guangdong Jingyi
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.72 times more return on investment than Guangdong Jingyi. However, Eastroc Beverage Group is 1.38 times less risky than Guangdong Jingyi. It trades about 0.07 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.01 per unit of risk. If you would invest 13,427 in Eastroc Beverage Group on October 25, 2024 and sell it today you would earn a total of 10,854 from holding Eastroc Beverage Group or generate 80.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Eastroc Beverage |
| Guangdong Jingyi Metal |
Eastroc Beverage and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Guangdong Jingyi
The main advantage of trading using opposite Eastroc Beverage and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's 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 |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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