Correlation Between Eastroc Beverage and Guangzhou Tinci
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By analyzing existing cross correlation between Eastroc Beverage Group and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Eastroc Beverage and Guangzhou Tinci 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 Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Guangzhou Tinci.
Diversification Opportunities for Eastroc Beverage and Guangzhou Tinci
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and Guangzhou is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials 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 Guangzhou Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Guangzhou Tinci
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.57 times more return on investment than Guangzhou Tinci. However, Eastroc Beverage Group is 1.76 times less risky than Guangzhou Tinci. It trades about 0.11 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.05 per unit of risk. If you would invest 18,132 in Eastroc Beverage Group on October 18, 2024 and sell it today you would earn a total of 5,471 from holding Eastroc Beverage Group or generate 30.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Eastroc Beverage |
| Guangzhou Tinci Materials |
Eastroc Beverage and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Guangzhou Tinci
The main advantage of trading using opposite Eastroc Beverage and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Guangzhou Tinci 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 Guangzhou Tinci will offset losses from the drop in Guangzhou Tinci's long position.| Eastroc Beverage vs. Harbin Hatou Investment | Eastroc Beverage vs. Chongqing Brewery Co | Eastroc Beverage vs. Easyhome New Retail | Eastroc Beverage vs. Shanghai Yaoji Playing |
| Guangzhou Tinci vs. Rising Nonferrous Metals | Guangzhou Tinci vs. China Minmetals Rare | Guangzhou Tinci vs. Anhui Transport Consulting | Guangzhou Tinci vs. Xinjiang Beixin RoadBridge |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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