Correlation Between Eastroc Beverage and Chengdu Kanghua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastroc Beverage Group and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Eastroc Beverage and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Chengdu Kanghua.
Diversification Opportunities for Eastroc Beverage and Chengdu Kanghua
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and Chengdu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Chengdu Kanghua
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.95 times more return on investment than Chengdu Kanghua. However, Eastroc Beverage Group is 1.05 times less risky than Chengdu Kanghua. It trades about 0.22 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.26 per unit of risk. If you would invest 22,033 in Eastroc Beverage Group on September 13, 2024 and sell it today you would earn a total of 2,217 from holding Eastroc Beverage Group or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Eastroc Beverage |
| Chengdu Kanghua Biol |
Eastroc Beverage and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Chengdu Kanghua
The main advantage of trading using opposite Eastroc Beverage and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Eastroc Beverage vs. Industrial and Commercial | Eastroc Beverage vs. Kweichow Moutai Co | Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. China Mobile Limited |
| Chengdu Kanghua vs. Bank of Suzhou | Chengdu Kanghua vs. Peoples Insurance of | Chengdu Kanghua vs. Yonyou Auto Information | Chengdu Kanghua vs. Longmaster Information Tech |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |