Correlation Between Eastroc Beverage and Tianjin Hi
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By analyzing existing cross correlation between Eastroc Beverage Group and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Eastroc Beverage and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Tianjin Hi.
Diversification Opportunities for Eastroc Beverage and Tianjin Hi
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and Tianjin is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Tianjin Hi go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Tianjin Hi
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.68 times more return on investment than Tianjin Hi. However, Eastroc Beverage Group is 1.48 times less risky than Tianjin Hi. It trades about 0.14 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about -0.02 per unit of risk. If you would invest 21,383 in Eastroc Beverage Group on October 30, 2024 and sell it today you would earn a total of 2,932 from holding Eastroc Beverage Group or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Eastroc Beverage |
| Tianjin Hi Tech |
Eastroc Beverage and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Tianjin Hi
The main advantage of trading using opposite Eastroc Beverage and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Industrial and Commercial | Eastroc Beverage vs. Bank of China | Eastroc Beverage vs. China Construction Bank |
| Tianjin Hi vs. Cultural Investment Holdings | Tianjin Hi vs. Northern United Publishing | Tianjin Hi vs. Chengdu Xingrong Investment | Tianjin Hi vs. Offcn Education Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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