Correlation Between CITIC Guoan and Tsingtao Brewery
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By analyzing existing cross correlation between CITIC Guoan Information and Tsingtao Brewery Co, you can compare the effects of market volatilities on CITIC Guoan 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 CITIC Guoan with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Tsingtao Brewery.
Diversification Opportunities for CITIC Guoan and Tsingtao Brewery
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Tsingtao is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and CITIC Guoan 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 CITIC Guoan Information 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 CITIC Guoan i.e., CITIC Guoan and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between CITIC Guoan and Tsingtao Brewery
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Tsingtao Brewery. In addition to that, CITIC Guoan is 1.73 times more volatile than Tsingtao Brewery Co. It trades about -0.14 of its total potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.07 per unit of volatility. If you would invest 7,510 in Tsingtao Brewery Co on September 12, 2024 and sell it today you would earn a total of 186.00 from holding Tsingtao Brewery Co or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Tsingtao Brewery Co
Performance |
| Timeline |
| CITIC Guoan Information |
| Tsingtao Brewery |
CITIC Guoan and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Tsingtao Brewery
The main advantage of trading using opposite CITIC Guoan and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan 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.| CITIC Guoan vs. Kweichow Moutai Co | CITIC Guoan vs. Shenzhen Mindray Bio Medical | CITIC Guoan vs. G bits Network Technology | CITIC Guoan vs. Beijing Roborock Technology |
| Tsingtao Brewery vs. Winner Medical Co | Tsingtao Brewery vs. Tongyu Communication | Tsingtao Brewery vs. Qingdao Hi Tech Moulds | Tsingtao Brewery vs. Cofoe Medical Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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