Correlation Between Eastroc Beverage and Shanghai Phichem
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By analyzing existing cross correlation between Eastroc Beverage Group and Shanghai Phichem Material, you can compare the effects of market volatilities on Eastroc Beverage and Shanghai Phichem 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 Shanghai Phichem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Shanghai Phichem.
Diversification Opportunities for Eastroc Beverage and Shanghai Phichem
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eastroc and Shanghai is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Shanghai Phichem Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Phichem Material 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 Shanghai Phichem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Phichem Material has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Shanghai Phichem go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Shanghai Phichem
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 1.23 times more return on investment than Shanghai Phichem. However, Eastroc Beverage is 1.23 times more volatile than Shanghai Phichem Material. It trades about -0.01 of its potential returns per unit of risk. Shanghai Phichem Material is currently generating about -0.09 per unit of risk. If you would invest 24,645 in Eastroc Beverage Group on October 30, 2024 and sell it today you would lose (330.00) from holding Eastroc Beverage Group or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Shanghai Phichem Material
Performance |
| Timeline |
| Eastroc Beverage |
| Shanghai Phichem Material |
Eastroc Beverage and Shanghai Phichem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Shanghai Phichem
The main advantage of trading using opposite Eastroc Beverage and Shanghai Phichem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Shanghai Phichem 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 Shanghai Phichem will offset losses from the drop in Shanghai Phichem's long position.| Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Industrial and Commercial | Eastroc Beverage vs. Bank of China | Eastroc Beverage vs. China Construction Bank |
| Shanghai Phichem vs. Zijin Mining Group | Shanghai Phichem vs. Wanhua Chemical Group | Shanghai Phichem vs. Baoshan Iron Steel | Shanghai Phichem vs. Shandong Gold Mining |
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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