Correlation Between Eastroc Beverage and Western Superconducting
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By analyzing existing cross correlation between Eastroc Beverage Group and Western Superconducting Tech, you can compare the effects of market volatilities on Eastroc Beverage and Western Superconducting 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 Western Superconducting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Western Superconducting.
Diversification Opportunities for Eastroc Beverage and Western Superconducting
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eastroc and Western is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Western Superconducting Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Superconducting 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 Western Superconducting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Superconducting has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Western Superconducting go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Western Superconducting
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.76 times more return on investment than Western Superconducting. However, Eastroc Beverage Group is 1.32 times less risky than Western Superconducting. It trades about 0.09 of its potential returns per unit of risk. Western Superconducting Tech is currently generating about -0.03 per unit of risk. If you would invest 13,220 in Eastroc Beverage Group on October 15, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Western Superconducting Tech
Performance |
| Timeline |
| Eastroc Beverage |
| Western Superconducting |
Eastroc Beverage and Western Superconducting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Western Superconducting
The main advantage of trading using opposite Eastroc Beverage and Western Superconducting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Western Superconducting 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 Western Superconducting will offset losses from the drop in Western Superconducting's long position.| Eastroc Beverage vs. Easyhome New Retail | Eastroc Beverage vs. Guizhou BroadcastingTV Info | Eastroc Beverage vs. Shaanxi Broadcast TV | Eastroc Beverage vs. Sunny Loan Top |
| Western Superconducting vs. Duzhe Publishing Media | Western Superconducting vs. Bank of Communications | Western Superconducting vs. Anhui Gujing Distillery | Western Superconducting vs. Tongyu Communication |
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 CEOs Directory module to screen CEOs from public companies around the world.
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