Correlation Between Juewei Food and Eastroc Beverage
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By analyzing existing cross correlation between Juewei Food Co and Eastroc Beverage Group, you can compare the effects of market volatilities on Juewei 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 Juewei Food with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Eastroc Beverage.
Diversification Opportunities for Juewei Food and Eastroc Beverage
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juewei and Eastroc is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food 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 Juewei 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 Juewei Food 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 Juewei Food i.e., Juewei Food and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Juewei Food and Eastroc Beverage
Assuming the 90 days trading horizon Juewei Food Co is expected to generate 1.86 times more return on investment than Eastroc Beverage. However, Juewei Food is 1.86 times more volatile than Eastroc Beverage Group. It trades about 0.16 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.24 per unit of risk. If you would invest 1,280 in Juewei Food Co on September 25, 2024 and sell it today you would earn a total of 595.00 from holding Juewei Food Co or generate 46.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Juewei Food Co vs. Eastroc Beverage Group
Performance |
Timeline |
Juewei Food |
Eastroc Beverage |
Juewei Food and Eastroc Beverage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Juewei Food and Eastroc Beverage
The main advantage of trading using opposite Juewei Food and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei 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.Juewei Food vs. Ming Yang Smart | Juewei Food vs. 159681 | Juewei Food vs. 159005 | Juewei Food vs. Loctek Ergonomic Technology |
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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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