Correlation Between Eastroc Beverage and Hainan Mining
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By analyzing existing cross correlation between Eastroc Beverage Group and Hainan Mining Co, you can compare the effects of market volatilities on Eastroc Beverage and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Hainan Mining.
Diversification Opportunities for Eastroc Beverage and Hainan Mining
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastroc and Hainan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Hainan Mining go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Hainan Mining
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.73 times more return on investment than Hainan Mining. However, Eastroc Beverage Group is 1.36 times less risky than Hainan Mining. It trades about 0.22 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.07 per unit of risk. If you would invest 21,920 in Eastroc Beverage Group on September 12, 2024 and sell it today you would earn a total of 2,330 from holding Eastroc Beverage Group or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Hainan Mining Co
Performance |
| Timeline |
| Eastroc Beverage |
| Hainan Mining |
Eastroc Beverage and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Hainan Mining
The main advantage of trading using opposite Eastroc Beverage and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Eastroc Beverage vs. China Petroleum Chemical | Eastroc Beverage vs. PetroChina Co Ltd | Eastroc Beverage vs. China State Construction | Eastroc Beverage vs. China Railway Group |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Rongsheng Petrochemical 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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