Correlation Between Eastroc Beverage and Luzhou Lao
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By analyzing existing cross correlation between Eastroc Beverage Group and Luzhou Lao Jiao, you can compare the effects of market volatilities on Eastroc Beverage and Luzhou Lao 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 Luzhou Lao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Luzhou Lao.
Diversification Opportunities for Eastroc Beverage and Luzhou Lao
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastroc and Luzhou is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Luzhou Lao Jiao in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luzhou Lao Jiao 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 Luzhou Lao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luzhou Lao Jiao has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Luzhou Lao go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Luzhou Lao
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 1.44 times more return on investment than Luzhou Lao. However, Eastroc Beverage is 1.44 times more volatile than Luzhou Lao Jiao. It trades about 0.02 of its potential returns per unit of risk. Luzhou Lao Jiao is currently generating about -0.07 per unit of risk. If you would invest 21,840 in Eastroc Beverage Group on December 2, 2024 and sell it today you would earn a total of 283.00 from holding Eastroc Beverage Group or generate 1.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Eastroc Beverage Group vs. Luzhou Lao Jiao
Performance |
Timeline |
Eastroc Beverage |
Luzhou Lao Jiao |
Eastroc Beverage and Luzhou Lao Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastroc Beverage and Luzhou Lao
The main advantage of trading using opposite Eastroc Beverage and Luzhou Lao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Luzhou Lao 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 Luzhou Lao will offset losses from the drop in Luzhou Lao's long position.Eastroc Beverage vs. Shandong Publishing Media | Eastroc Beverage vs. Changjiang Publishing Media | Eastroc Beverage vs. Jiangsu Phoenix Publishing | Eastroc Beverage vs. Duzhe Publishing Media |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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