Correlation Between Eastroc Beverage and Inner Mongolia
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By analyzing existing cross correlation between Eastroc Beverage Group and Inner Mongolia BaoTou, you can compare the effects of market volatilities on Eastroc Beverage and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Inner Mongolia.
Diversification Opportunities for Eastroc Beverage and Inner Mongolia
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and Inner is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Inner Mongolia BaoTou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia BaoTou 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia BaoTou has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Inner Mongolia go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Inner Mongolia
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to under-perform the Inner Mongolia. In addition to that, Eastroc Beverage is 2.47 times more volatile than Inner Mongolia BaoTou. It trades about -0.05 of its total potential returns per unit of risk. Inner Mongolia BaoTou is currently generating about -0.05 per unit of volatility. If you would invest 180.00 in Inner Mongolia BaoTou on November 5, 2024 and sell it today you would lose (2.00) from holding Inner Mongolia BaoTou or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Inner Mongolia BaoTou
Performance |
| Timeline |
| Eastroc Beverage |
| Inner Mongolia BaoTou |
Eastroc Beverage and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Inner Mongolia
The main advantage of trading using opposite Eastroc Beverage and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Eastroc Beverage vs. Nanjing Putian Telecommunications | Eastroc Beverage vs. Cloud Live Technology | Eastroc Beverage vs. Shenzhen Coship Electronics | Eastroc Beverage vs. Shenzhen Hifuture Electric |
| Inner Mongolia vs. Chengdu Xingrong Investment | Inner Mongolia vs. Suzhou Weizhixiang Food | Inner Mongolia vs. Jiamei Food Packaging | Inner Mongolia vs. Jinhui Liquor Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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