Correlation Between Eastroc Beverage and Guangzhou Shangpin
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By analyzing existing cross correlation between Eastroc Beverage Group and Guangzhou Shangpin Home, you can compare the effects of market volatilities on Eastroc Beverage and Guangzhou Shangpin 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 Guangzhou Shangpin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Guangzhou Shangpin.
Diversification Opportunities for Eastroc Beverage and Guangzhou Shangpin
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and Guangzhou is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Guangzhou Shangpin Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shangpin Home 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 Guangzhou Shangpin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shangpin Home has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Guangzhou Shangpin go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Guangzhou Shangpin
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 1.31 times more return on investment than Guangzhou Shangpin. However, Eastroc Beverage is 1.31 times more volatile than Guangzhou Shangpin Home. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Shangpin Home is currently generating about -0.31 per unit of risk. If you would invest 24,212 in Eastroc Beverage Group on October 25, 2024 and sell it today you would earn a total of 69.00 from holding Eastroc Beverage Group or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Guangzhou Shangpin Home
Performance |
| Timeline |
| Eastroc Beverage |
| Guangzhou Shangpin Home |
Eastroc Beverage and Guangzhou Shangpin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Guangzhou Shangpin
The main advantage of trading using opposite Eastroc Beverage and Guangzhou Shangpin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Guangzhou Shangpin 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 Guangzhou Shangpin will offset losses from the drop in Guangzhou Shangpin's long position.| Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Postal Savings Bank | Eastroc Beverage vs. Bank of Communications | Eastroc Beverage vs. China Merchants Bank |
| Guangzhou Shangpin vs. PetroChina Co Ltd | Guangzhou Shangpin vs. Gansu Jiu Steel | Guangzhou Shangpin vs. Ming Yang Smart | Guangzhou Shangpin vs. Aba Chemicals Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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