Correlation Between Eastroc Beverage and Changjiang Jinggong
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By analyzing existing cross correlation between Eastroc Beverage Group and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Eastroc Beverage and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Changjiang Jinggong.
Diversification Opportunities for Eastroc Beverage and Changjiang Jinggong
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and Changjiang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Changjiang Jinggong
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.97 times more return on investment than Changjiang Jinggong. However, Eastroc Beverage Group is 1.03 times less risky than Changjiang Jinggong. It trades about 0.03 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about 0.01 per unit of risk. If you would invest 21,701 in Eastroc Beverage Group on September 4, 2024 and sell it today you would earn a total of 139.00 from holding Eastroc Beverage Group or generate 0.64% 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. Changjiang Jinggong Steel
Performance |
| Timeline |
| Eastroc Beverage |
| Changjiang Jinggong Steel |
Eastroc Beverage and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Changjiang Jinggong
The main advantage of trading using opposite Eastroc Beverage and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Eastroc Beverage vs. Shaanxi Energy Investment | Eastroc Beverage vs. China Express Airlines | Eastroc Beverage vs. Wuhan Hvsen Biotechnology | Eastroc Beverage vs. Ningbo MedicalSystem Biotechnology |
| Changjiang Jinggong vs. Guangzhou Jointas Chemical | Changjiang Jinggong vs. China National Software | Changjiang Jinggong vs. Dhc Software Co | Changjiang Jinggong vs. Bomesc Offshore Engineering |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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