Correlation Between Eastroc Beverage and HeNan Splendor
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By analyzing existing cross correlation between Eastroc Beverage Group and HeNan Splendor Science, you can compare the effects of market volatilities on Eastroc Beverage and HeNan Splendor 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 HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and HeNan Splendor.
Diversification Opportunities for Eastroc Beverage and HeNan Splendor
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eastroc and HeNan is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science 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 HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and HeNan Splendor go up and down completely randomly.
Pair Corralation between Eastroc Beverage and HeNan Splendor
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.82 times more return on investment than HeNan Splendor. However, Eastroc Beverage Group is 1.22 times less risky than HeNan Splendor. It trades about -0.1 of its potential returns per unit of risk. HeNan Splendor Science is currently generating about -0.11 per unit of risk. If you would invest 25,200 in Eastroc Beverage Group on October 18, 2024 and sell it today you would lose (1,597) from holding Eastroc Beverage Group or give up 6.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. HeNan Splendor Science
Performance |
| Timeline |
| Eastroc Beverage |
| HeNan Splendor Science |
Eastroc Beverage and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and HeNan Splendor
The main advantage of trading using opposite Eastroc Beverage and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Eastroc Beverage vs. Allgens Medical Technology | Eastroc Beverage vs. Nanjing Vishee Medical | Eastroc Beverage vs. Shenzhen Glory Medical | Eastroc Beverage vs. Anhui Transport Consulting |
| HeNan Splendor vs. Beijing Kaiwen Education | HeNan Splendor vs. Sinocat Environmental Technology | HeNan Splendor vs. Guangdong Liantai Environmental | HeNan Splendor vs. Penyao Environmental Protection |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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