Correlation Between Eastroc Beverage and Ningbo David
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By analyzing existing cross correlation between Eastroc Beverage Group and Ningbo David Medical, you can compare the effects of market volatilities on Eastroc Beverage and Ningbo David 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 Ningbo David. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Ningbo David.
Diversification Opportunities for Eastroc Beverage and Ningbo David
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastroc and Ningbo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Ningbo David Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo David Medical 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 Ningbo David. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo David Medical has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Ningbo David go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Ningbo David
Assuming the 90 days trading horizon Eastroc Beverage is expected to generate 1.15 times less return on investment than Ningbo David. But when comparing it to its historical volatility, Eastroc Beverage Group is 1.93 times less risky than Ningbo David. It trades about 0.21 of its potential returns per unit of risk. Ningbo David Medical is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 993.00 in Ningbo David Medical on September 12, 2024 and sell it today you would earn a total of 287.00 from holding Ningbo David Medical or generate 28.9% 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. Ningbo David Medical
Performance |
| Timeline |
| Eastroc Beverage |
| Ningbo David Medical |
Eastroc Beverage and Ningbo David Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Ningbo David
The main advantage of trading using opposite Eastroc Beverage and Ningbo David positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Ningbo David 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 Ningbo David will offset losses from the drop in Ningbo David's long position.| Eastroc Beverage vs. China Petroleum Chemical | Eastroc Beverage vs. PetroChina Co Ltd | Eastroc Beverage vs. China State Construction | Eastroc Beverage vs. China Railway Group |
| Ningbo David vs. AVIC Fund Management | Ningbo David vs. TianJin 712 Communication | Ningbo David vs. Guangdong Shenglu Telecommunication | Ningbo David vs. Innovative Medical Management |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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