Correlation Between Eastroc Beverage and Shenzhen Transsion
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By analyzing existing cross correlation between Eastroc Beverage Group and Shenzhen Transsion Holdings, you can compare the effects of market volatilities on Eastroc Beverage and Shenzhen Transsion 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 Shenzhen Transsion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Shenzhen Transsion.
Diversification Opportunities for Eastroc Beverage and Shenzhen Transsion
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastroc and Shenzhen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Shenzhen Transsion Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Transsion 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 Shenzhen Transsion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Transsion has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Shenzhen Transsion go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Shenzhen Transsion
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.55 times more return on investment than Shenzhen Transsion. However, Eastroc Beverage Group is 1.82 times less risky than Shenzhen Transsion. It trades about 0.11 of its potential returns per unit of risk. Shenzhen Transsion Holdings is currently generating about 0.04 per unit of risk. If you would invest 16,975 in Eastroc Beverage Group on September 5, 2024 and sell it today you would earn a total of 4,885 from holding Eastroc Beverage Group or generate 28.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Shenzhen Transsion Holdings
Performance |
| Timeline |
| Eastroc Beverage |
| Shenzhen Transsion |
Eastroc Beverage and Shenzhen Transsion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Shenzhen Transsion
The main advantage of trading using opposite Eastroc Beverage and Shenzhen Transsion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Shenzhen Transsion 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 Shenzhen Transsion will offset losses from the drop in Shenzhen Transsion's long position.| Eastroc Beverage vs. Chengdu Kanghua Biological | Eastroc Beverage vs. Beijing Wantai Biological | Eastroc Beverage vs. Suzhou Novoprotein Scientific | Eastroc Beverage vs. Aluminum Corp of |
| Shenzhen Transsion vs. Eastroc Beverage Group | Shenzhen Transsion vs. Xiamen Jihong Package | Shenzhen Transsion vs. Sinofibers Technology Co | Shenzhen Transsion vs. Northking Information 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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