Correlation Between Eastroc Beverage and China Eastern
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By analyzing existing cross correlation between Eastroc Beverage Group and China Eastern Airlines, you can compare the effects of market volatilities on Eastroc Beverage and China Eastern 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 Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and China Eastern.
Diversification Opportunities for Eastroc Beverage and China Eastern
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastroc and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and China Eastern go up and down completely randomly.
Pair Corralation between Eastroc Beverage and China Eastern
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 1.46 times more return on investment than China Eastern. However, Eastroc Beverage is 1.46 times more volatile than China Eastern Airlines. It trades about 0.35 of its potential returns per unit of risk. China Eastern Airlines is currently generating about 0.29 per unit of risk. If you would invest 21,553 in Eastroc Beverage Group on September 15, 2024 and sell it today you would earn a total of 3,574 from holding Eastroc Beverage Group or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. China Eastern Airlines
Performance |
| Timeline |
| Eastroc Beverage |
| China Eastern Airlines |
Eastroc Beverage and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and China Eastern
The main advantage of trading using opposite Eastroc Beverage and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, China Eastern 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 Eastern will offset losses from the drop in China Eastern's long position.| Eastroc Beverage vs. Industrial and Commercial | Eastroc Beverage vs. Kweichow Moutai Co | Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. China Mobile Limited |
| China Eastern vs. Sichuan Teway Food | China Eastern vs. Eastroc Beverage Group | China Eastern vs. Jiamei Food Packaging | China Eastern vs. Muyuan Foodstuff 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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