Correlation Between Eastroc Beverage and Shenyang Blue
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By analyzing existing cross correlation between Eastroc Beverage Group and Shenyang Blue Silver, you can compare the effects of market volatilities on Eastroc Beverage and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Shenyang Blue.
Diversification Opportunities for Eastroc Beverage and Shenyang Blue
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastroc and Shenyang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Shenyang Blue go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Shenyang Blue
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.6 times more return on investment than Shenyang Blue. However, Eastroc Beverage Group is 1.67 times less risky than Shenyang Blue. It trades about 0.26 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about -0.18 per unit of risk. If you would invest 21,923 in Eastroc Beverage Group on September 14, 2024 and sell it today you would earn a total of 2,714 from holding Eastroc Beverage Group or generate 12.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Shenyang Blue Silver
Performance |
| Timeline |
| Eastroc Beverage |
| Shenyang Blue Silver |
Eastroc Beverage and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Shenyang Blue
The main advantage of trading using opposite Eastroc Beverage and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue'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 |
| Shenyang Blue vs. Eastroc Beverage Group | Shenyang Blue vs. Guangdong Wens Foodstuff | Shenyang Blue vs. Tibet Huayu Mining | Shenyang Blue vs. Shantou Wanshun Package |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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