Correlation Between Eastroc Beverage and Hubei Forbon
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By analyzing existing cross correlation between Eastroc Beverage Group and Hubei Forbon Technology, you can compare the effects of market volatilities on Eastroc Beverage and Hubei Forbon 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 Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Hubei Forbon.
Diversification Opportunities for Eastroc Beverage and Hubei Forbon
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eastroc and Hubei is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon Technology 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 Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Hubei Forbon go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Hubei Forbon
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.75 times more return on investment than Hubei Forbon. However, Eastroc Beverage Group is 1.33 times less risky than Hubei Forbon. It trades about 0.4 of its potential returns per unit of risk. Hubei Forbon Technology is currently generating about -0.23 per unit of risk. If you would invest 22,395 in Eastroc Beverage Group on October 11, 2024 and sell it today you would earn a total of 4,745 from holding Eastroc Beverage Group or generate 21.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Hubei Forbon Technology
Performance |
| Timeline |
| Eastroc Beverage |
| Hubei Forbon Technology |
Eastroc Beverage and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Hubei Forbon
The main advantage of trading using opposite Eastroc Beverage and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Hubei Forbon 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 Hubei Forbon will offset losses from the drop in Hubei Forbon's long position.| Eastroc Beverage vs. Quectel Wireless Solutions | Eastroc Beverage vs. Henan Shuanghui Investment | Eastroc Beverage vs. Tieling Newcity Investment | Eastroc Beverage vs. Dongfeng Automobile Co |
| Hubei Forbon vs. Chongqing Brewery Co | Hubei Forbon vs. Eastroc Beverage Group | Hubei Forbon vs. Jiangsu Yanghe Brewery | Hubei Forbon vs. Threes Company Media |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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