Correlation Between Eastroc Beverage and Huasi Agricultural
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By analyzing existing cross correlation between Eastroc Beverage Group and Huasi Agricultural Development, you can compare the effects of market volatilities on Eastroc Beverage and Huasi Agricultural 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 Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Huasi Agricultural.
Diversification Opportunities for Eastroc Beverage and Huasi Agricultural
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and Huasi is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural 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 Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Huasi Agricultural
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.64 times more return on investment than Huasi Agricultural. However, Eastroc Beverage Group is 1.57 times less risky than Huasi Agricultural. It trades about 0.06 of its potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.01 per unit of risk. If you would invest 13,577 in Eastroc Beverage Group on September 4, 2024 and sell it today you would earn a total of 8,263 from holding Eastroc Beverage Group or generate 60.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Huasi Agricultural Development
Performance |
| Timeline |
| Eastroc Beverage |
| Huasi Agricultural |
Eastroc Beverage and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Huasi Agricultural
The main advantage of trading using opposite Eastroc Beverage and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| Eastroc Beverage vs. Shaanxi Energy Investment | Eastroc Beverage vs. China Express Airlines | Eastroc Beverage vs. Wuhan Hvsen Biotechnology | Eastroc Beverage vs. Ningbo MedicalSystem Biotechnology |
| Huasi Agricultural vs. Industrial and Commercial | Huasi Agricultural vs. Agricultural Bank of | Huasi Agricultural vs. China Construction Bank | Huasi Agricultural vs. Bank of China |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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