Correlation Between Eastroc Beverage and Guangzhou Boji
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastroc Beverage Group and Guangzhou Boji Medical, you can compare the effects of market volatilities on Eastroc Beverage and Guangzhou Boji 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 Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Guangzhou Boji.
Diversification Opportunities for Eastroc Beverage and Guangzhou Boji
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and Guangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji Medical 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 Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Guangzhou Boji go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Guangzhou Boji
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.71 times more return on investment than Guangzhou Boji. However, Eastroc Beverage Group is 1.4 times less risky than Guangzhou Boji. It trades about 0.31 of its potential returns per unit of risk. Guangzhou Boji Medical is currently generating about 0.06 per unit of risk. If you would invest 21,074 in Eastroc Beverage Group on September 26, 2024 and sell it today you would earn a total of 3,138 from holding Eastroc Beverage Group or generate 14.89% 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. Guangzhou Boji Medical
Performance |
Timeline |
Eastroc Beverage |
Guangzhou Boji Medical |
Eastroc Beverage and Guangzhou Boji Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastroc Beverage and Guangzhou Boji
The main advantage of trading using opposite Eastroc Beverage and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Guangzhou Boji 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 Guangzhou Boji will offset losses from the drop in Guangzhou Boji'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 |
Guangzhou Boji vs. Poly Real Estate | Guangzhou Boji vs. China Vanke Co | Guangzhou Boji vs. China Merchants Shekou | Guangzhou Boji vs. Huafa Industrial Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |