Correlation Between Chongqing Brewery and Eastroc Beverage
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Brewery Co and Eastroc Beverage Group, you can compare the effects of market volatilities on Chongqing Brewery 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 Chongqing Brewery with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Eastroc Beverage.
Diversification Opportunities for Chongqing Brewery and Eastroc Beverage
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chongqing and Eastroc is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Chongqing Brewery 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 Chongqing Brewery Co 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 Chongqing Brewery i.e., Chongqing Brewery and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Eastroc Beverage
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the Eastroc Beverage. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Brewery Co is 2.28 times less risky than Eastroc Beverage. The stock trades about -0.02 of its potential returns per unit of risk. The Eastroc Beverage Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 22,200 in Eastroc Beverage Group on December 10, 2024 and sell it today you would earn a total of 467.00 from holding Eastroc Beverage Group or generate 2.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chongqing Brewery Co vs. Eastroc Beverage Group
Performance |
Timeline |
Chongqing Brewery |
Eastroc Beverage |
Chongqing Brewery and Eastroc Beverage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chongqing Brewery and Eastroc Beverage
The main advantage of trading using opposite Chongqing Brewery and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery 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.Chongqing Brewery vs. Shandong Longquan Pipeline | Chongqing Brewery vs. Unigroup Guoxin Microelectronics | Chongqing Brewery vs. Xinya Electronic Co | Chongqing Brewery vs. Uroica Mining Safety |
Eastroc Beverage vs. Hangzhou Guotai Environmental | Eastroc Beverage vs. Wangneng Environment Co | Eastroc Beverage vs. Linkage Software Co | Eastroc Beverage vs. Servyou Software 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |