Correlation Between Eastroc Beverage and Muyuan Foodstuff
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By analyzing existing cross correlation between Eastroc Beverage Group and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Eastroc Beverage and Muyuan Foodstuff 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 Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Muyuan Foodstuff.
Diversification Opportunities for Eastroc Beverage and Muyuan Foodstuff
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastroc and Muyuan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff 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 Muyuan Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muyuan Foodstuff has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Muyuan Foodstuff
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 1.04 times more return on investment than Muyuan Foodstuff. However, Eastroc Beverage is 1.04 times more volatile than Muyuan Foodstuff Co. It trades about 0.13 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about 0.02 per unit of risk. If you would invest 13,597 in Eastroc Beverage Group on September 14, 2024 and sell it today you would earn a total of 11,530 from holding Eastroc Beverage Group or generate 84.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Eastroc Beverage |
| Muyuan Foodstuff |
Eastroc Beverage and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Muyuan Foodstuff
The main advantage of trading using opposite Eastroc Beverage and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Muyuan Foodstuff 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 Muyuan Foodstuff will offset losses from the drop in Muyuan Foodstuff's long position.| Eastroc Beverage vs. Jilin Jlu Communication | Eastroc Beverage vs. Kuang Chi Technologies | Eastroc Beverage vs. Guangzhou Seagull Kitchen | Eastroc Beverage vs. Anhui Deli Household |
| Muyuan Foodstuff vs. CSSC Offshore Marine | Muyuan Foodstuff vs. Postal Savings Bank | Muyuan Foodstuff vs. Marssenger Kitchenware Co | Muyuan Foodstuff vs. Yindu Kitchen Equipment |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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