Correlation Between Eastroc Beverage and Jiangsu Yueda
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By analyzing existing cross correlation between Eastroc Beverage Group and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Eastroc Beverage and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Jiangsu Yueda.
Diversification Opportunities for Eastroc Beverage and Jiangsu Yueda
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and Jiangsu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Jiangsu Yueda
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.8 times more return on investment than Jiangsu Yueda. However, Eastroc Beverage Group is 1.25 times less risky than Jiangsu Yueda. It trades about 0.24 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.12 per unit of risk. If you would invest 17,427 in Eastroc Beverage Group on September 25, 2024 and sell it today you would earn a total of 6,772 from holding Eastroc Beverage Group or generate 38.86% 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. Jiangsu Yueda Investment
Performance |
Timeline |
Eastroc Beverage |
Jiangsu Yueda Investment |
Eastroc Beverage and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastroc Beverage and Jiangsu Yueda
The main advantage of trading using opposite Eastroc Beverage and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.Eastroc Beverage vs. BYD Co Ltd | Eastroc Beverage vs. China Mobile Limited | Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Industrial and Commercial |
Jiangsu Yueda vs. Zhongyin Babi Food | Jiangsu Yueda vs. Eastroc Beverage Group | Jiangsu Yueda vs. Qingdao Foods Co | Jiangsu Yueda vs. Jiahe Foods Industry |
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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