Correlation Between Eastroc Beverage and BeiGene
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By analyzing existing cross correlation between Eastroc Beverage Group and BeiGene, you can compare the effects of market volatilities on Eastroc Beverage and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and BeiGene.
Diversification Opportunities for Eastroc Beverage and BeiGene
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and BeiGene is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and BeiGene go up and down completely randomly.
Pair Corralation between Eastroc Beverage and BeiGene
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to under-perform the BeiGene. But the stock apears to be less risky and, when comparing its historical volatility, Eastroc Beverage Group is 2.24 times less risky than BeiGene. The stock trades about -0.04 of its potential returns per unit of risk. The BeiGene is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 17,092 in BeiGene on September 3, 2024 and sell it today you would earn a total of 1,046 from holding BeiGene or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. BeiGene
Performance |
| Timeline |
| Eastroc Beverage |
| BeiGene |
Eastroc Beverage and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and BeiGene
The main advantage of trading using opposite Eastroc Beverage and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Eastroc Beverage vs. Zhengzhou Qianweiyangchu Food | Eastroc Beverage vs. New Hope Dairy | Eastroc Beverage vs. Yunnan Jianzhijia Health Chain | Eastroc Beverage vs. Impulse Qingdao Health |
| BeiGene vs. Shandong Huifa Foodstuff | BeiGene vs. Fujian Anjoy Foods | BeiGene vs. Shantou Wanshun Package | BeiGene vs. Guocheng Mining Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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