Correlation Between Guocheng Mining and Tsingtao Brewery
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By analyzing existing cross correlation between Guocheng Mining Co and Tsingtao Brewery Co, you can compare the effects of market volatilities on Guocheng Mining 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 Guocheng Mining with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Tsingtao Brewery.
Diversification Opportunities for Guocheng Mining and Tsingtao Brewery
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guocheng and Tsingtao is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Guocheng Mining 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 Guocheng Mining Co 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 Guocheng Mining i.e., Guocheng Mining and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Guocheng Mining and Tsingtao Brewery
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.48 times more return on investment than Tsingtao Brewery. However, Guocheng Mining is 1.48 times more volatile than Tsingtao Brewery Co. It trades about 0.03 of its potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.01 per unit of risk. If you would invest 1,015 in Guocheng Mining Co on November 5, 2024 and sell it today you would earn a total of 173.00 from holding Guocheng Mining Co or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Guocheng Mining |
| Tsingtao Brewery |
Guocheng Mining and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Tsingtao Brewery
The main advantage of trading using opposite Guocheng Mining and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining 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.| Guocheng Mining vs. Guangzhou Jinyi Media | Guocheng Mining vs. Xiangyang Automobile Bearing | Guocheng Mining vs. Anhui Jianghuai Automobile | Guocheng Mining vs. CIMC Vehicles Co |
| Tsingtao Brewery vs. Zhonghong Pulin Medical | Tsingtao Brewery vs. Xiangyu Medical Co | Tsingtao Brewery vs. Guangdong Sunwill Precising | Tsingtao Brewery vs. APT Medical |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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