Correlation Between Eastroc Beverage and Juewei Food
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By analyzing existing cross correlation between Eastroc Beverage Group and Juewei Food Co, you can compare the effects of market volatilities on Eastroc Beverage and Juewei Food 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 Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Juewei Food.
Diversification Opportunities for Eastroc Beverage and Juewei Food
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastroc and Juewei is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food 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 Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Juewei Food go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Juewei Food
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.73 times more return on investment than Juewei Food. However, Eastroc Beverage Group is 1.38 times less risky than Juewei Food. It trades about 0.08 of its potential returns per unit of risk. Juewei Food Co is currently generating about -0.07 per unit of risk. If you would invest 12,759 in Eastroc Beverage Group on September 25, 2024 and sell it today you would earn a total of 11,440 from holding Eastroc Beverage Group or generate 89.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Eastroc Beverage Group vs. Juewei Food Co
Performance |
Timeline |
Eastroc Beverage |
Juewei Food |
Eastroc Beverage and Juewei Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastroc Beverage and Juewei Food
The main advantage of trading using opposite Eastroc Beverage and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food'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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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