Correlation Between Eastroc Beverage and Shandong Rike
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By analyzing existing cross correlation between Eastroc Beverage Group and Shandong Rike Chemical, you can compare the effects of market volatilities on Eastroc Beverage and Shandong Rike 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 Shandong Rike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Shandong Rike.
Diversification Opportunities for Eastroc Beverage and Shandong Rike
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eastroc and Shandong is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Shandong Rike Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Rike Chemical 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 Shandong Rike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Rike Chemical has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Shandong Rike go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Shandong Rike
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.68 times more return on investment than Shandong Rike. However, Eastroc Beverage Group is 1.48 times less risky than Shandong Rike. It trades about 0.15 of its potential returns per unit of risk. Shandong Rike Chemical is currently generating about 0.05 per unit of risk. If you would invest 21,580 in Eastroc Beverage Group on October 17, 2024 and sell it today you would earn a total of 3,007 from holding Eastroc Beverage Group or generate 13.93% 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. Shandong Rike Chemical
Performance |
| Timeline |
| Eastroc Beverage |
| Shandong Rike Chemical |
Eastroc Beverage and Shandong Rike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Shandong Rike
The main advantage of trading using opposite Eastroc Beverage and Shandong Rike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Shandong Rike 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 Shandong Rike will offset losses from the drop in Shandong Rike's long position.| Eastroc Beverage vs. Guangdong Jinma Entertainment | Eastroc Beverage vs. Shanghai Yaoji Playing | Eastroc Beverage vs. Lander Sports Development | Eastroc Beverage vs. Beijing Enlight Media |
| Shandong Rike vs. Kuang Chi Technologies | Shandong Rike vs. Eastroc Beverage Group | Shandong Rike vs. Sinofibers Technology Co | Shandong Rike vs. Tianshui Huatian Technology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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