Correlation Between Eastroc Beverage and China United
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By analyzing existing cross correlation between Eastroc Beverage Group and China United Network, you can compare the effects of market volatilities on Eastroc Beverage and China United 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 United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and China United.
Diversification Opportunities for Eastroc Beverage and China United
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and China is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and China United Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China United Network 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 United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China United Network has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and China United go up and down completely randomly.
Pair Corralation between Eastroc Beverage and China United
Assuming the 90 days trading horizon Eastroc Beverage is expected to generate 1.0 times less return on investment than China United. But when comparing it to its historical volatility, Eastroc Beverage Group is 2.29 times less risky than China United. It trades about 0.09 of its potential returns per unit of risk. China United Network is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 522.00 in China United Network on September 12, 2024 and sell it today you would earn a total of 8.00 from holding China United Network or generate 1.53% 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. China United Network
Performance |
| Timeline |
| Eastroc Beverage |
| China United Network |
Eastroc Beverage and China United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and China United
The main advantage of trading using opposite Eastroc Beverage and China United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, China United 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 United will offset losses from the drop in China United'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 United vs. HeBei Jinniu Chemical | China United vs. Ningbo Bohui Chemical | China United vs. Shenzhen Bioeasy Biotechnology | China United vs. Jilin Chemical Fibre |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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