Correlation Between Eastroc Beverage and AVCON Information
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By analyzing existing cross correlation between Eastroc Beverage Group and AVCON Information Tech, you can compare the effects of market volatilities on Eastroc Beverage and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and AVCON Information.
Diversification Opportunities for Eastroc Beverage and AVCON Information
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and AVCON is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and AVCON Information go up and down completely randomly.
Pair Corralation between Eastroc Beverage and AVCON Information
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.47 times more return on investment than AVCON Information. However, Eastroc Beverage Group is 2.15 times less risky than AVCON Information. It trades about 0.13 of its potential returns per unit of risk. AVCON Information Tech 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. AVCON Information Tech
Performance |
| Timeline |
| Eastroc Beverage |
| AVCON Information Tech |
Eastroc Beverage and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and AVCON Information
The main advantage of trading using opposite Eastroc Beverage and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information'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 |
| AVCON Information vs. Industrial and Commercial | AVCON Information vs. China Construction Bank | AVCON Information vs. Bank of China | AVCON Information vs. Agricultural Bank of |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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