Correlation Between Eastroc Beverage and Suofeiya Home
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By analyzing existing cross correlation between Eastroc Beverage Group and Suofeiya Home Collection, you can compare the effects of market volatilities on Eastroc Beverage and Suofeiya Home 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 Suofeiya Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Suofeiya Home.
Diversification Opportunities for Eastroc Beverage and Suofeiya Home
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastroc and Suofeiya is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Suofeiya Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suofeiya Home Collection 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 Suofeiya Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suofeiya Home Collection has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Suofeiya Home go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Suofeiya Home
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.72 times more return on investment than Suofeiya Home. However, Eastroc Beverage Group is 1.39 times less risky than Suofeiya Home. It trades about 0.08 of its potential returns per unit of risk. Suofeiya Home Collection is currently generating about 0.02 per unit of risk. If you would invest 12,713 in Eastroc Beverage Group on August 31, 2024 and sell it today you would earn a total of 8,265 from holding Eastroc Beverage Group or generate 65.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Suofeiya Home Collection
Performance |
| Timeline |
| Eastroc Beverage |
| Suofeiya Home Collection |
Eastroc Beverage and Suofeiya Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Suofeiya Home
The main advantage of trading using opposite Eastroc Beverage and Suofeiya Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Suofeiya Home 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 Suofeiya Home will offset losses from the drop in Suofeiya Home's long position.| Eastroc Beverage vs. Lutian Machinery Co | Eastroc Beverage vs. PetroChina Co Ltd | Eastroc Beverage vs. Bank of China | Eastroc Beverage vs. Gansu Jiu Steel |
| Suofeiya Home vs. Shandong Publishing Media | Suofeiya Home vs. Shanghai Ziyan Foods | Suofeiya Home vs. Eastroc Beverage Group | Suofeiya Home vs. Northern United Publishing |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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