Correlation Between Eastroc Beverage and China Molybdenum
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By analyzing existing cross correlation between Eastroc Beverage Group and China Molybdenum Co, you can compare the effects of market volatilities on Eastroc Beverage and China Molybdenum 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 Molybdenum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and China Molybdenum.
Diversification Opportunities for Eastroc Beverage and China Molybdenum
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastroc and China is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and China Molybdenum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Molybdenum 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 Molybdenum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Molybdenum has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and China Molybdenum go up and down completely randomly.
Pair Corralation between Eastroc Beverage and China Molybdenum
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.78 times more return on investment than China Molybdenum. However, Eastroc Beverage Group is 1.28 times less risky than China Molybdenum. It trades about 0.1 of its potential returns per unit of risk. China Molybdenum Co is currently generating about -0.02 per unit of risk. If you would invest 17,232 in Eastroc Beverage Group on September 1, 2024 and sell it today you would earn a total of 4,151 from holding Eastroc Beverage Group or generate 24.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Eastroc Beverage Group vs. China Molybdenum Co
Performance |
| Timeline |
| Eastroc Beverage |
| China Molybdenum |
Eastroc Beverage and China Molybdenum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and China Molybdenum
The main advantage of trading using opposite Eastroc Beverage and China Molybdenum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, China Molybdenum 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 Molybdenum will offset losses from the drop in China Molybdenum's long position.| Eastroc Beverage vs. BeiGene | Eastroc Beverage vs. Kweichow Moutai Co | Eastroc Beverage vs. Beijing Roborock Technology | Eastroc Beverage vs. G bits Network Technology |
| China Molybdenum vs. Touchstone International Medical | China Molybdenum vs. Bomin Electronics Co | China Molybdenum vs. Qingdao Haier Biomedical | China Molybdenum vs. Cofoe Medical 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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