Correlation Between Eastroc Beverage and Gansu Jiu
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By analyzing existing cross correlation between Eastroc Beverage Group and Gansu Jiu Steel, you can compare the effects of market volatilities on Eastroc Beverage and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Gansu Jiu.
Diversification Opportunities for Eastroc Beverage and Gansu Jiu
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastroc and Gansu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Gansu Jiu go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Gansu Jiu
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.88 times more return on investment than Gansu Jiu. However, Eastroc Beverage Group is 1.13 times less risky than Gansu Jiu. It trades about 0.31 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.1 per unit of risk. If you would invest 21,074 in Eastroc Beverage Group on September 24, 2024 and sell it today you would earn a total of 3,125 from holding Eastroc Beverage Group or generate 14.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Eastroc Beverage Group vs. Gansu Jiu Steel
Performance |
Timeline |
Eastroc Beverage |
Gansu Jiu Steel |
Eastroc Beverage and Gansu Jiu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastroc Beverage and Gansu Jiu
The main advantage of trading using opposite Eastroc Beverage and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.Eastroc Beverage vs. BYD Co Ltd | Eastroc Beverage vs. China Mobile Limited | Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Industrial and Commercial |
Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Shandong Gold Mining | Gansu Jiu vs. Rongsheng Petrochemical 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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