Correlation Between Eastroc Beverage and Inner Mongolia
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By analyzing existing cross correlation between Eastroc Beverage Group and Inner Mongolia Furui, you can compare the effects of market volatilities on Eastroc Beverage and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Inner Mongolia.
Diversification Opportunities for Eastroc Beverage and Inner Mongolia
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eastroc and Inner is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Inner Mongolia Furui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Furui 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Furui has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Inner Mongolia go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Inner Mongolia
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.31 times more return on investment than Inner Mongolia. However, Eastroc Beverage Group is 3.22 times less risky than Inner Mongolia. It trades about -0.11 of its potential returns per unit of risk. Inner Mongolia Furui is currently generating about -0.25 per unit of risk. If you would invest 22,048 in Eastroc Beverage Group on August 29, 2024 and sell it today you would lose (898.00) from holding Eastroc Beverage Group or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Inner Mongolia Furui
Performance |
| Timeline |
| Eastroc Beverage |
| Inner Mongolia Furui |
Eastroc Beverage and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Inner Mongolia
The main advantage of trading using opposite Eastroc Beverage and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Eastroc Beverage vs. PetroChina Co Ltd | Eastroc Beverage vs. China Mobile Limited | Eastroc Beverage vs. Ping An Insurance | Eastroc Beverage vs. China Petroleum Chemical |
| Inner Mongolia vs. YLZ Information Tech | Inner Mongolia vs. Hangzhou Gisway Information | Inner Mongolia vs. Jinling Hotel Corp | Inner Mongolia vs. Eastern Communications 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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