Correlation Between Zoje Resources and Tsingtao Brewery
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By analyzing existing cross correlation between Zoje Resources Investment and Tsingtao Brewery Co, you can compare the effects of market volatilities on Zoje Resources 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 Zoje Resources with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Tsingtao Brewery.
Diversification Opportunities for Zoje Resources and Tsingtao Brewery
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zoje and Tsingtao is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources 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 Zoje Resources 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 Zoje Resources 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 Zoje Resources i.e., Zoje Resources and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Zoje Resources and Tsingtao Brewery
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.42 times more return on investment than Tsingtao Brewery. However, Zoje Resources is 1.42 times more volatile than Tsingtao Brewery Co. It trades about 0.14 of its potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.02 per unit of risk. If you would invest 188.00 in Zoje Resources Investment on September 16, 2024 and sell it today you would earn a total of 140.00 from holding Zoje Resources Investment or generate 74.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Zoje Resources Investment |
| Tsingtao Brewery |
Zoje Resources and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Tsingtao Brewery
The main advantage of trading using opposite Zoje Resources and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources 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.| Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. Kweichow Moutai Co | Zoje Resources vs. Agricultural Bank of | Zoje Resources vs. China Mobile Limited |
| Tsingtao Brewery vs. Industrial and Commercial | Tsingtao Brewery vs. Kweichow Moutai Co | Tsingtao Brewery vs. Agricultural Bank of | Tsingtao Brewery vs. China Mobile Limited |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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