Correlation Between Eastroc Beverage and Panda Dairy Corp
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By analyzing existing cross correlation between Eastroc Beverage Group and Panda Dairy Corp, you can compare the effects of market volatilities on Eastroc Beverage and Panda Dairy Corp 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 Panda Dairy Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Panda Dairy Corp.
Diversification Opportunities for Eastroc Beverage and Panda Dairy Corp
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastroc and Panda is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Panda Dairy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panda Dairy Corp 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 Panda Dairy Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panda Dairy Corp has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Panda Dairy Corp go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Panda Dairy Corp
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.57 times more return on investment than Panda Dairy Corp. However, Eastroc Beverage Group is 1.77 times less risky than Panda Dairy Corp. It trades about 0.1 of its potential returns per unit of risk. Panda Dairy Corp is currently generating about 0.02 per unit of risk. If you would invest 12,027 in Eastroc Beverage Group on August 31, 2024 and sell it today you would earn a total of 9,356 from holding Eastroc Beverage Group or generate 77.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Panda Dairy Corp
Performance |
| Timeline |
| Eastroc Beverage |
| Panda Dairy Corp |
Eastroc Beverage and Panda Dairy Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Panda Dairy Corp
The main advantage of trading using opposite Eastroc Beverage and Panda Dairy Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Panda Dairy Corp 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 Panda Dairy Corp will offset losses from the drop in Panda Dairy Corp's long position.| Eastroc Beverage vs. Lutian Machinery Co | Eastroc Beverage vs. PetroChina Co Ltd | Eastroc Beverage vs. Bank of China | Eastroc Beverage vs. Gansu Jiu Steel |
| Panda Dairy Corp vs. Lutian Machinery Co | Panda Dairy Corp vs. PetroChina Co Ltd | Panda Dairy Corp vs. Bank of China | Panda Dairy Corp vs. Gansu Jiu Steel |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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