Correlation Between Eastroc Beverage and Xiamen Jihong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastroc Beverage Group and Xiamen Jihong Package, you can compare the effects of market volatilities on Eastroc Beverage and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Xiamen Jihong.
Diversification Opportunities for Eastroc Beverage and Xiamen Jihong
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and Xiamen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Xiamen Jihong
Assuming the 90 days trading horizon Eastroc Beverage is expected to generate 11.67 times less return on investment than Xiamen Jihong. But when comparing it to its historical volatility, Eastroc Beverage Group is 2.21 times less risky than Xiamen Jihong. It trades about 0.03 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,419 in Xiamen Jihong Package on September 5, 2024 and sell it today you would earn a total of 156.00 from holding Xiamen Jihong Package or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Xiamen Jihong Package
Performance |
| Timeline |
| Eastroc Beverage |
| Xiamen Jihong Package |
Eastroc Beverage and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Xiamen Jihong
The main advantage of trading using opposite Eastroc Beverage and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Eastroc Beverage vs. Chengdu Kanghua Biological | Eastroc Beverage vs. Beijing Wantai Biological | Eastroc Beverage vs. Suzhou Novoprotein Scientific | Eastroc Beverage vs. Aluminum Corp of |
| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong vs. Rongsheng Petrochemical 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |