Correlation Between Eastroc Beverage and Jiangsu Phoenix
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By analyzing existing cross correlation between Eastroc Beverage Group and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Eastroc Beverage and Jiangsu Phoenix 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 Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Jiangsu Phoenix.
Diversification Opportunities for Eastroc Beverage and Jiangsu Phoenix
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and Jiangsu is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Jiangsu Phoenix Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Phoenix Publ 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 Jiangsu Phoenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Phoenix Publ has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Jiangsu Phoenix
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.76 times more return on investment than Jiangsu Phoenix. However, Eastroc Beverage Group is 1.32 times less risky than Jiangsu Phoenix. It trades about 0.09 of its potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about -0.01 per unit of risk. If you would invest 12,558 in Eastroc Beverage Group on September 4, 2024 and sell it today you would earn a total of 9,282 from holding Eastroc Beverage Group or generate 73.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Eastroc Beverage |
| Jiangsu Phoenix Publ |
Eastroc Beverage and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Jiangsu Phoenix
The main advantage of trading using opposite Eastroc Beverage and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Jiangsu Phoenix 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 Jiangsu Phoenix will offset losses from the drop in Jiangsu Phoenix'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 |
| Jiangsu Phoenix vs. Ming Yang Smart | Jiangsu Phoenix vs. 159681 | Jiangsu Phoenix vs. 159005 | Jiangsu Phoenix vs. 516220 |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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