Correlation Between Eastroc Beverage and Xinjiang Baodi
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By analyzing existing cross correlation between Eastroc Beverage Group and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Eastroc Beverage and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Xinjiang Baodi.
Diversification Opportunities for Eastroc Beverage and Xinjiang Baodi
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eastroc and Xinjiang is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Xinjiang Baodi
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 1.0 times more return on investment than Xinjiang Baodi. However, Eastroc Beverage is 1.0 times more volatile than Xinjiang Baodi Mining. It trades about 0.14 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about -0.07 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Eastroc Beverage |
| Xinjiang Baodi Mining |
Eastroc Beverage and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Xinjiang Baodi
The main advantage of trading using opposite Eastroc Beverage and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi'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 |
| Xinjiang Baodi vs. Haima Automobile Group | Xinjiang Baodi vs. Nuode Investment Co | Xinjiang Baodi vs. Zoje Resources Investment | Xinjiang Baodi vs. Jiangsu Xinri E Vehicle |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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