Correlation Between Eastroc Beverage and Oppein Home
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By analyzing existing cross correlation between Eastroc Beverage Group and Oppein Home Group, you can compare the effects of market volatilities on Eastroc Beverage and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Oppein Home.
Diversification Opportunities for Eastroc Beverage and Oppein Home
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastroc and Oppein is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Oppein Home go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Oppein Home
Assuming the 90 days trading horizon Eastroc Beverage is expected to generate 3.34 times less return on investment than Oppein Home. But when comparing it to its historical volatility, Eastroc Beverage Group is 1.76 times less risky than Oppein Home. It trades about 0.12 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,335 in Oppein Home Group on August 31, 2024 and sell it today you would earn a total of 2,725 from holding Oppein Home Group or generate 62.86% 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. Oppein Home Group
Performance |
| Timeline |
| Eastroc Beverage |
| Oppein Home Group |
Eastroc Beverage and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Oppein Home
The main advantage of trading using opposite Eastroc Beverage and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Eastroc Beverage vs. Lutian Machinery Co | Eastroc Beverage vs. PetroChina Co Ltd | Eastroc Beverage vs. Bank of China | Eastroc Beverage vs. Gansu Jiu Steel |
| Oppein Home vs. China State Construction | Oppein Home vs. China Merchants Shekou | Oppein Home vs. Huafa Industrial Co | Oppein Home vs. China International Capital |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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