Correlation Between Eastroc Beverage and Shandong Homey
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By analyzing existing cross correlation between Eastroc Beverage Group and Shandong Homey Aquatic, you can compare the effects of market volatilities on Eastroc Beverage and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Shandong Homey.
Diversification Opportunities for Eastroc Beverage and Shandong Homey
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastroc and Shandong is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Shandong Homey go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Shandong Homey
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 1.06 times more return on investment than Shandong Homey. However, Eastroc Beverage is 1.06 times more volatile than Shandong Homey Aquatic. It trades about -0.01 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about -0.18 per unit of risk. If you would invest 24,386 in Eastroc Beverage Group on October 28, 2024 and sell it today you would lose (273.00) from holding Eastroc Beverage Group or give up 1.12% 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. Shandong Homey Aquatic
Performance |
| Timeline |
| Eastroc Beverage |
| Shandong Homey Aquatic |
Eastroc Beverage and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Shandong Homey
The main advantage of trading using opposite Eastroc Beverage and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey'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 |
| Shandong Homey vs. Kweichow Moutai Co | Shandong Homey vs. Contemporary Amperex Technology | Shandong Homey vs. G bits Network Technology | Shandong Homey vs. Beijing Roborock 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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