Correlation Between Eastroc Beverage and Kingclean Electric
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By analyzing existing cross correlation between Eastroc Beverage Group and Kingclean Electric Co, you can compare the effects of market volatilities on Eastroc Beverage and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Kingclean Electric.
Diversification Opportunities for Eastroc Beverage and Kingclean Electric
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastroc and Kingclean is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Kingclean Electric go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Kingclean Electric
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.82 times more return on investment than Kingclean Electric. However, Eastroc Beverage Group is 1.21 times less risky than Kingclean Electric. It trades about 0.09 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about 0.0 per unit of risk. If you would invest 14,423 in Eastroc Beverage Group on August 29, 2024 and sell it today you would earn a total of 6,727 from holding Eastroc Beverage Group or generate 46.64% 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. Kingclean Electric Co
Performance |
| Timeline |
| Eastroc Beverage |
| Kingclean Electric |
Eastroc Beverage and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Kingclean Electric
The main advantage of trading using opposite Eastroc Beverage and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Eastroc Beverage vs. PetroChina Co Ltd | Eastroc Beverage vs. China Mobile Limited | Eastroc Beverage vs. Ping An Insurance | Eastroc Beverage vs. China Petroleum Chemical |
| Kingclean Electric vs. Nanjing OLO Home | Kingclean Electric vs. Xilinmen Furniture Co | Kingclean Electric vs. Shandong Homey Aquatic | Kingclean Electric vs. Qumei Furniture Group |
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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