Correlation Between Eastroc Beverage and Chongqing Sulian
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By analyzing existing cross correlation between Eastroc Beverage Group and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Eastroc Beverage and Chongqing Sulian 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 Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Chongqing Sulian.
Diversification Opportunities for Eastroc Beverage and Chongqing Sulian
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and Chongqing is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic 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 Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Chongqing Sulian
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.58 times more return on investment than Chongqing Sulian. However, Eastroc Beverage Group is 1.74 times less risky than Chongqing Sulian. It trades about 0.07 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about -0.01 per unit of risk. If you would invest 13,220 in Eastroc Beverage Group on October 18, 2024 and sell it today you would earn a total of 10,383 from holding Eastroc Beverage Group or generate 78.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Chongqing Sulian Plastic
Performance |
| Timeline |
| Eastroc Beverage |
| Chongqing Sulian Plastic |
Eastroc Beverage and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Chongqing Sulian
The main advantage of trading using opposite Eastroc Beverage and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.| Eastroc Beverage vs. Harbin Hatou Investment | Eastroc Beverage vs. Chongqing Brewery Co | Eastroc Beverage vs. Easyhome New Retail | Eastroc Beverage vs. Shanghai Yaoji Playing |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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