Correlation Between Maoming Petro and Tsingtao Brewery
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Tsingtao Brewery Co, you can compare the effects of market volatilities on Maoming Petro 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 Maoming Petro with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Tsingtao Brewery.
Diversification Opportunities for Maoming Petro and Tsingtao Brewery
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maoming and Tsingtao is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Maoming Petro 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 Maoming Petro Chemical Shihua 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 Maoming Petro i.e., Maoming Petro and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Maoming Petro and Tsingtao Brewery
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to under-perform the Tsingtao Brewery. In addition to that, Maoming Petro is 1.23 times more volatile than Tsingtao Brewery Co. It trades about -0.01 of its total potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.0 per unit of volatility. If you would invest 7,056 in Tsingtao Brewery Co on October 26, 2024 and sell it today you would lose (99.00) from holding Tsingtao Brewery Co or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Maoming Petro Chemical |
| Tsingtao Brewery |
Maoming Petro and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Tsingtao Brewery
The main advantage of trading using opposite Maoming Petro and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro 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.| Maoming Petro vs. Fibocom Wireless | Maoming Petro vs. Jilin Jlu Communication | Maoming Petro vs. Beijing Bewinner Communications | Maoming Petro vs. China Mobile Limited |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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