Correlation Between TCL Corp and Beijing Yanjing
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By analyzing existing cross correlation between TCL Corp and Beijing Yanjing Brewery, you can compare the effects of market volatilities on TCL Corp and Beijing Yanjing 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 TCL Corp with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of TCL Corp and Beijing Yanjing.
Diversification Opportunities for TCL Corp and Beijing Yanjing
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TCL and Beijing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding TCL Corp and Beijing Yanjing Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yanjing Brewery and TCL Corp 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 TCL Corp are associated (or correlated) with Beijing Yanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yanjing Brewery has no effect on the direction of TCL Corp i.e., TCL Corp and Beijing Yanjing go up and down completely randomly.
Pair Corralation between TCL Corp and Beijing Yanjing
Assuming the 90 days trading horizon TCL Corp is expected to under-perform the Beijing Yanjing. In addition to that, TCL Corp is 1.95 times more volatile than Beijing Yanjing Brewery. It trades about -0.18 of its total potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about -0.02 per unit of volatility. If you would invest 1,040 in Beijing Yanjing Brewery on September 12, 2024 and sell it today you would lose (7.00) from holding Beijing Yanjing Brewery or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TCL Corp vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| TCL Corp |
| Beijing Yanjing Brewery |
TCL Corp and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TCL Corp and Beijing Yanjing
The main advantage of trading using opposite TCL Corp and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TCL Corp position performs unexpectedly, Beijing Yanjing 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 Beijing Yanjing will offset losses from the drop in Beijing Yanjing's long position.| TCL Corp vs. Lutian Machinery Co | TCL Corp vs. PetroChina Co Ltd | TCL Corp vs. Bank of China | TCL Corp vs. Gansu Jiu Steel |
| Beijing Yanjing vs. China Petroleum Chemical | Beijing Yanjing vs. PetroChina Co Ltd | Beijing Yanjing vs. China State Construction | Beijing Yanjing vs. China Railway 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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