Correlation Between Eastroc Beverage and Tianjin Realty
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By analyzing existing cross correlation between Eastroc Beverage Group and Tianjin Realty Development, you can compare the effects of market volatilities on Eastroc Beverage and Tianjin Realty 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 Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Tianjin Realty.
Diversification Opportunities for Eastroc Beverage and Tianjin Realty
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastroc and Tianjin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel 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 Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Tianjin Realty go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Tianjin Realty
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.5 times more return on investment than Tianjin Realty. However, Eastroc Beverage Group is 2.0 times less risky than Tianjin Realty. It trades about 0.09 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about 0.02 per unit of risk. If you would invest 13,352 in Eastroc Beverage Group on October 11, 2024 and sell it today you would earn a total of 13,539 from holding Eastroc Beverage Group or generate 101.4% 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. Tianjin Realty Development
Performance |
| Timeline |
| Eastroc Beverage |
| Tianjin Realty Devel |
Eastroc Beverage and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Tianjin Realty
The main advantage of trading using opposite Eastroc Beverage and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Tianjin Realty 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 Realty will offset losses from the drop in Tianjin Realty's long position.| Eastroc Beverage vs. Runjian Communication Co | Eastroc Beverage vs. Shandong Longda Meat | Eastroc Beverage vs. Panda Dairy Corp | Eastroc Beverage vs. Guilin Seamild Foods |
| Tianjin Realty vs. Eastroc Beverage Group | Tianjin Realty vs. V V Food | Tianjin Realty vs. Servyou Software Group | Tianjin Realty vs. Qingdao Foods 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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