Correlation Between Eastroc Beverage and Jiajia Food
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By analyzing existing cross correlation between Eastroc Beverage Group and Jiajia Food Group, you can compare the effects of market volatilities on Eastroc Beverage and Jiajia Food 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 Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Jiajia Food.
Diversification Opportunities for Eastroc Beverage and Jiajia Food
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastroc and Jiajia is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Jiajia Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiajia Food Group 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 Jiajia Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiajia Food Group has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Jiajia Food go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Jiajia Food
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.6 times more return on investment than Jiajia Food. However, Eastroc Beverage Group is 1.66 times less risky than Jiajia Food. It trades about 0.1 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.03 per unit of risk. If you would invest 12,027 in Eastroc Beverage Group on August 31, 2024 and sell it today you would earn a total of 9,356 from holding Eastroc Beverage Group or generate 77.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Jiajia Food Group
Performance |
| Timeline |
| Eastroc Beverage |
| Jiajia Food Group |
Eastroc Beverage and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Jiajia Food
The main advantage of trading using opposite Eastroc Beverage and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Jiajia Food 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 Jiajia Food will offset losses from the drop in Jiajia Food'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 |
| Jiajia Food vs. Lutian Machinery Co | Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. Bank of China | Jiajia Food vs. Gansu Jiu Steel |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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