Correlation Between Eastroc Beverage and Hangzhou Arcvideo
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By analyzing existing cross correlation between Eastroc Beverage Group and Hangzhou Arcvideo Technology, you can compare the effects of market volatilities on Eastroc Beverage and Hangzhou Arcvideo 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 Hangzhou Arcvideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Hangzhou Arcvideo.
Diversification Opportunities for Eastroc Beverage and Hangzhou Arcvideo
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and Hangzhou is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Hangzhou Arcvideo Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Arcvideo 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 Hangzhou Arcvideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Arcvideo has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Hangzhou Arcvideo go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Hangzhou Arcvideo
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.39 times more return on investment than Hangzhou Arcvideo. However, Eastroc Beverage Group is 2.57 times less risky than Hangzhou Arcvideo. It trades about 0.09 of its potential returns per unit of risk. Hangzhou Arcvideo Technology is currently generating about 0.02 per unit of risk. If you would invest 13,220 in Eastroc Beverage Group on October 14, 2024 and sell it today you would earn a total of 14,476 from holding Eastroc Beverage Group or generate 109.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Hangzhou Arcvideo Technology
Performance |
| Timeline |
| Eastroc Beverage |
| Hangzhou Arcvideo |
Eastroc Beverage and Hangzhou Arcvideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Hangzhou Arcvideo
The main advantage of trading using opposite Eastroc Beverage and Hangzhou Arcvideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Hangzhou Arcvideo 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 Hangzhou Arcvideo will offset losses from the drop in Hangzhou Arcvideo's long position.| Eastroc Beverage vs. Emdoor Information Co | Eastroc Beverage vs. Qiming Information Technology | Eastroc Beverage vs. AVCON Information Tech | Eastroc Beverage vs. Zhongfu Information |
| Hangzhou Arcvideo vs. Qingdao Foods Co | Hangzhou Arcvideo vs. Xiwang Foodstuffs Co | Hangzhou Arcvideo vs. Jiangsu Xinri E Vehicle | Hangzhou Arcvideo vs. Eastroc Beverage 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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