Correlation Between Eastroc Beverage and BeiGene
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By analyzing existing cross correlation between Eastroc Beverage Group and BeiGene, you can compare the effects of market volatilities on Eastroc Beverage and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and BeiGene.
Diversification Opportunities for Eastroc Beverage and BeiGene
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastroc and BeiGene is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and BeiGene go up and down completely randomly.
Pair Corralation between Eastroc Beverage and BeiGene
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.74 times more return on investment than BeiGene. However, Eastroc Beverage Group is 1.35 times less risky than BeiGene. It trades about 0.27 of its potential returns per unit of risk. BeiGene is currently generating about 0.04 per unit of risk. If you would invest 17,211 in Eastroc Beverage Group on September 14, 2024 and sell it today you would earn a total of 7,426 from holding Eastroc Beverage Group or generate 43.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.28% |
Values | Daily Returns |
Eastroc Beverage Group vs. BeiGene
Performance |
Timeline |
Eastroc Beverage |
BeiGene |
Eastroc Beverage and BeiGene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastroc Beverage and BeiGene
The main advantage of trading using opposite Eastroc Beverage and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.Eastroc Beverage vs. Jilin Jlu Communication | Eastroc Beverage vs. Kuang Chi Technologies | Eastroc Beverage vs. Guangzhou Seagull Kitchen | Eastroc Beverage vs. Anhui Deli Household |
BeiGene vs. Great Sun Foods Co | BeiGene vs. Nanjing Putian Telecommunications | BeiGene vs. Shandong Huifa Foodstuff | BeiGene vs. Eastroc Beverage Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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