Correlation Between Jointo Energy and Tsingtao Brewery
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By analyzing existing cross correlation between Jointo Energy Investment and Tsingtao Brewery Co, you can compare the effects of market volatilities on Jointo Energy and Tsingtao Brewery 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 Jointo Energy with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Tsingtao Brewery.
Diversification Opportunities for Jointo Energy and Tsingtao Brewery
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jointo and Tsingtao is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Jointo Energy 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 Jointo Energy Investment are associated (or correlated) with Tsingtao Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsingtao Brewery has no effect on the direction of Jointo Energy i.e., Jointo Energy and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Jointo Energy and Tsingtao Brewery
Assuming the 90 days trading horizon Jointo Energy Investment is expected to under-perform the Tsingtao Brewery. But the stock apears to be less risky and, when comparing its historical volatility, Jointo Energy Investment is 1.21 times less risky than Tsingtao Brewery. The stock trades about -0.1 of its potential returns per unit of risk. The Tsingtao Brewery Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 8,712 in Tsingtao Brewery Co on September 3, 2024 and sell it today you would lose (1,414) from holding Tsingtao Brewery Co or give up 16.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Jointo Energy Investment |
| Tsingtao Brewery |
Jointo Energy and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Tsingtao Brewery
The main advantage of trading using opposite Jointo Energy and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Tsingtao Brewery 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 Tsingtao Brewery will offset losses from the drop in Tsingtao Brewery's long position.| Jointo Energy vs. Industrial and Commercial | Jointo Energy vs. Agricultural Bank of | Jointo Energy vs. China Construction Bank | Jointo Energy vs. Bank of China |
| Tsingtao Brewery vs. Agricultural Bank of | Tsingtao Brewery vs. Jiangxi Naipu Mining | Tsingtao Brewery vs. Pengxin International Mining | Tsingtao Brewery vs. Guocheng Mining 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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