Correlation Between Eastroc Beverage and Tieling Newcity
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By analyzing existing cross correlation between Eastroc Beverage Group and Tieling Newcity Investment, you can compare the effects of market volatilities on Eastroc Beverage and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Tieling Newcity.
Diversification Opportunities for Eastroc Beverage and Tieling Newcity
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and Tieling is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Tieling Newcity go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Tieling Newcity
Assuming the 90 days trading horizon Eastroc Beverage is expected to generate 1.38 times less return on investment than Tieling Newcity. But when comparing it to its historical volatility, Eastroc Beverage Group is 1.07 times less risky than Tieling Newcity. It trades about 0.21 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 203.00 in Tieling Newcity Investment on September 26, 2024 and sell it today you would earn a total of 102.00 from holding Tieling Newcity Investment or generate 50.25% 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. Tieling Newcity Investment
Performance |
Timeline |
Eastroc Beverage |
Tieling Newcity Inve |
Eastroc Beverage and Tieling Newcity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastroc Beverage and Tieling Newcity
The main advantage of trading using opposite Eastroc Beverage and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.Eastroc Beverage vs. Jinling Hotel Corp | Eastroc Beverage vs. Harbin Hatou Investment | Eastroc Beverage vs. Jiangsu Yueda Investment | Eastroc Beverage vs. Hubei Geoway Investment |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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