Correlation Between Eastroc Beverage and Shanghai Yaoji
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By analyzing existing cross correlation between Eastroc Beverage Group and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Eastroc Beverage and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Shanghai Yaoji.
Diversification Opportunities for Eastroc Beverage and Shanghai Yaoji
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and Shanghai is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Shanghai Yaoji
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to under-perform the Shanghai Yaoji. But the stock apears to be less risky and, when comparing its historical volatility, Eastroc Beverage Group is 1.38 times less risky than Shanghai Yaoji. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai Yaoji Playing is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,734 in Shanghai Yaoji Playing on October 28, 2024 and sell it today you would earn a total of 116.00 from holding Shanghai Yaoji Playing or generate 4.24% 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. Shanghai Yaoji Playing
Performance |
| Timeline |
| Eastroc Beverage |
| Shanghai Yaoji Playing |
Eastroc Beverage and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Shanghai Yaoji
The main advantage of trading using opposite Eastroc Beverage and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Industrial and Commercial | Eastroc Beverage vs. Bank of China | Eastroc Beverage vs. China Construction Bank |
| Shanghai Yaoji vs. Wuhan Hvsen Biotechnology | Shanghai Yaoji vs. Shandong Sanyuan Biotechnology | Shanghai Yaoji vs. Changchun BCHT Biotechnology | Shanghai Yaoji vs. Jiugui Liquor 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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