Correlation Between Eastroc Beverage and Ningbo Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastroc Beverage Group and Ningbo Construction Co, you can compare the effects of market volatilities on Eastroc Beverage and Ningbo Construction 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 Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Ningbo Construction.
Diversification Opportunities for Eastroc Beverage and Ningbo Construction
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and Ningbo is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Ningbo Construction go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Ningbo Construction
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.78 times more return on investment than Ningbo Construction. However, Eastroc Beverage Group is 1.29 times less risky than Ningbo Construction. It trades about 0.06 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.02 per unit of risk. If you would invest 13,577 in Eastroc Beverage Group on September 4, 2024 and sell it today you would earn a total of 8,263 from holding Eastroc Beverage Group or generate 60.86% 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. Ningbo Construction Co
Performance |
| Timeline |
| Eastroc Beverage |
| Ningbo Construction |
Eastroc Beverage and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Ningbo Construction
The main advantage of trading using opposite Eastroc Beverage and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Ningbo Construction 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 Ningbo Construction will offset losses from the drop in Ningbo Construction'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 |
| Ningbo Construction vs. China Life Insurance | Ningbo Construction vs. Cinda Securities Co | Ningbo Construction vs. Piotech Inc A | Ningbo Construction vs. Dongxing Sec 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |