Correlation Between Eastroc Beverage and China Petroleum
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By analyzing existing cross correlation between Eastroc Beverage Group and China Petroleum Chemical, you can compare the effects of market volatilities on Eastroc Beverage and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and China Petroleum.
Diversification Opportunities for Eastroc Beverage and China Petroleum
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and China is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and China Petroleum go up and down completely randomly.
Pair Corralation between Eastroc Beverage and China Petroleum
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 1.4 times more return on investment than China Petroleum. However, Eastroc Beverage is 1.4 times more volatile than China Petroleum Chemical. It trades about -0.05 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.13 per unit of risk. If you would invest 21,798 in Eastroc Beverage Group on August 25, 2024 and sell it today you would lose (421.00) from holding Eastroc Beverage Group or give up 1.93% 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. China Petroleum Chemical
Performance |
| Timeline |
| Eastroc Beverage |
| China Petroleum Chemical |
Eastroc Beverage and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and China Petroleum
The main advantage of trading using opposite Eastroc Beverage and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Eastroc Beverage vs. China Petroleum Chemical | Eastroc Beverage vs. PetroChina Co Ltd | Eastroc Beverage vs. China State Construction | Eastroc Beverage vs. China Railway Group |
| China Petroleum vs. Nantong Haixing Electronics | China Petroleum vs. CITIC Metal Co | China Petroleum vs. Guangzhou Dongfang Hotel | China Petroleum vs. Unigroup Guoxin Microelectronics |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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