Correlation Between Eastroc Beverage and China Everbright
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By analyzing existing cross correlation between Eastroc Beverage Group and China Everbright Bank, you can compare the effects of market volatilities on Eastroc Beverage and China Everbright 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 China Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and China Everbright.
Diversification Opportunities for Eastroc Beverage and China Everbright
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and China Everbright Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright Bank 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 China Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright Bank has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and China Everbright go up and down completely randomly.
Pair Corralation between Eastroc Beverage and China Everbright
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 1.53 times more return on investment than China Everbright. However, Eastroc Beverage is 1.53 times more volatile than China Everbright Bank. It trades about 0.24 of its potential returns per unit of risk. China Everbright Bank is currently generating about 0.3 per unit of risk. If you would invest 22,033 in Eastroc Beverage Group on September 13, 2024 and sell it today you would earn a total of 2,604 from holding Eastroc Beverage Group or generate 11.82% 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. China Everbright Bank
Performance |
| Timeline |
| Eastroc Beverage |
| China Everbright Bank |
Eastroc Beverage and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and China Everbright
The main advantage of trading using opposite Eastroc Beverage and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, China Everbright 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 China Everbright will offset losses from the drop in China Everbright's long position.| Eastroc Beverage vs. Jilin Jlu Communication | Eastroc Beverage vs. Kuang Chi Technologies | Eastroc Beverage vs. Guangzhou Seagull Kitchen | Eastroc Beverage vs. Anhui Deli Household |
| China Everbright vs. HanS Laser Tech | China Everbright vs. Changchun UP Optotech | China Everbright vs. Xinjiang Baodi Mining | China Everbright vs. Guangzhou KingTeller 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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