Correlation Between Eastroc Beverage and Kuangda Technology
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By analyzing existing cross correlation between Eastroc Beverage Group and Kuangda Technology Group, you can compare the effects of market volatilities on Eastroc Beverage and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Kuangda Technology.
Diversification Opportunities for Eastroc Beverage and Kuangda Technology
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastroc and Kuangda is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Kuangda Technology go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Kuangda Technology
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.83 times more return on investment than Kuangda Technology. However, Eastroc Beverage Group is 1.21 times less risky than Kuangda Technology. It trades about 0.09 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.0 per unit of risk. If you would invest 13,220 in Eastroc Beverage Group on October 15, 2024 and sell it today you would earn a total of 14,476 from holding Eastroc Beverage Group or generate 109.5% 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. Kuangda Technology Group
Performance |
| Timeline |
| Eastroc Beverage |
| Kuangda Technology |
Eastroc Beverage and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Kuangda Technology
The main advantage of trading using opposite Eastroc Beverage and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology'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 |
| Kuangda Technology vs. Vanfund Urban Investment | Kuangda Technology vs. Great Sun Foods Co | Kuangda Technology vs. Metro Investment Development | Kuangda Technology vs. Anji Foodstuff 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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