Correlation Between Eastroc Beverage and Runjian Communication
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By analyzing existing cross correlation between Eastroc Beverage Group and Runjian Communication Co, you can compare the effects of market volatilities on Eastroc Beverage and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Runjian Communication.
Diversification Opportunities for Eastroc Beverage and Runjian Communication
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and Runjian is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Runjian Communication go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Runjian Communication
Assuming the 90 days trading horizon Eastroc Beverage is expected to generate 1.04 times less return on investment than Runjian Communication. But when comparing it to its historical volatility, Eastroc Beverage Group is 1.37 times less risky than Runjian Communication. It trades about 0.31 of its potential returns per unit of risk. Runjian Communication Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,963 in Runjian Communication Co on September 26, 2024 and sell it today you would earn a total of 449.00 from holding Runjian Communication Co or generate 15.15% 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. Runjian Communication Co
Performance |
Timeline |
Eastroc Beverage |
Runjian Communication |
Eastroc Beverage and Runjian Communication Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastroc Beverage and Runjian Communication
The main advantage of trading using opposite Eastroc Beverage and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication'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 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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