Correlation Between Namchow Food and Eastroc Beverage
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By analyzing existing cross correlation between Namchow Food Group and Eastroc Beverage Group, you can compare the effects of market volatilities on Namchow Food and Eastroc Beverage 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 Namchow Food with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namchow Food and Eastroc Beverage.
Diversification Opportunities for Namchow Food and Eastroc Beverage
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Namchow and Eastroc is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Namchow Food Group and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Namchow Food 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 Namchow Food Group are associated (or correlated) with Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Namchow Food i.e., Namchow Food and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Namchow Food and Eastroc Beverage
Assuming the 90 days trading horizon Namchow Food is expected to generate 1.04 times less return on investment than Eastroc Beverage. But when comparing it to its historical volatility, Namchow Food Group is 1.06 times less risky than Eastroc Beverage. It trades about 0.27 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 17,211 in Eastroc Beverage Group on September 14, 2024 and sell it today you would earn a total of 7,426 from holding Eastroc Beverage Group or generate 43.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Namchow Food Group vs. Eastroc Beverage Group
Performance |
Timeline |
Namchow Food Group |
Eastroc Beverage |
Namchow Food and Eastroc Beverage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Namchow Food and Eastroc Beverage
The main advantage of trading using opposite Namchow Food and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namchow Food position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.Namchow Food vs. ROPEOK Technology Group | Namchow Food vs. Maxvision Technology Corp | Namchow Food vs. Jiujiang Shanshui Technology | Namchow Food vs. Keeson Technology Corp |
Eastroc Beverage vs. Jilin Jlu Communication | Eastroc Beverage vs. Kuang Chi Technologies | Eastroc Beverage vs. Guangzhou Seagull Kitchen | Eastroc Beverage vs. Anhui Deli Household |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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