Correlation Between Eastroc Beverage and Sichuan Jinshi
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By analyzing existing cross correlation between Eastroc Beverage Group and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Eastroc Beverage and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Sichuan Jinshi.
Diversification Opportunities for Eastroc Beverage and Sichuan Jinshi
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eastroc and Sichuan is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Sichuan Jinshi
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.61 times more return on investment than Sichuan Jinshi. However, Eastroc Beverage Group is 1.65 times less risky than Sichuan Jinshi. It trades about 0.4 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.18 per unit of risk. If you would invest 24,250 in Eastroc Beverage Group on October 12, 2024 and sell it today you would earn a total of 3,446 from holding Eastroc Beverage Group or generate 14.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Eastroc Beverage |
| Sichuan Jinshi Technology |
Eastroc Beverage and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Sichuan Jinshi
The main advantage of trading using opposite Eastroc Beverage and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Eastroc Beverage vs. Konfoong Materials International | Eastroc Beverage vs. Shanghai Broadband Technology | Eastroc Beverage vs. Jinsanjiang Silicon Material | Eastroc Beverage vs. RoadMain T Co |
| Sichuan Jinshi vs. Zhejiang Yongjin Metal | Sichuan Jinshi vs. Tongling Nonferrous Metals | Sichuan Jinshi vs. Beijing Sanyuan Foods | Sichuan Jinshi vs. Eastroc Beverage Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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