Correlation Between Lianhe Chemical and Tsingtao Brewery
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By analyzing existing cross correlation between Lianhe Chemical Technology and Tsingtao Brewery Co, you can compare the effects of market volatilities on Lianhe Chemical 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 Lianhe Chemical with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lianhe Chemical and Tsingtao Brewery.
Diversification Opportunities for Lianhe Chemical and Tsingtao Brewery
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lianhe and Tsingtao is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lianhe Chemical Technology and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Lianhe Chemical 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 Lianhe Chemical Technology 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 Lianhe Chemical i.e., Lianhe Chemical and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Lianhe Chemical and Tsingtao Brewery
Assuming the 90 days trading horizon Lianhe Chemical Technology is expected to under-perform the Tsingtao Brewery. In addition to that, Lianhe Chemical is 1.15 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lianhe Chemical Technology vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Lianhe Chemical Tech |
| Tsingtao Brewery |
Lianhe Chemical and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lianhe Chemical and Tsingtao Brewery
The main advantage of trading using opposite Lianhe Chemical and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lianhe Chemical 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.| Lianhe Chemical vs. Everdisplay Optronics Shanghai | Lianhe Chemical vs. XinJiang GuoTong Pipeline | Lianhe Chemical vs. China Sports Industry | Lianhe Chemical vs. Everjoy Health Group |
| Tsingtao Brewery vs. Qingdao Choho Industrial | Tsingtao Brewery vs. Nanxing Furniture Machinery | Tsingtao Brewery vs. Guocheng Mining Co | Tsingtao Brewery vs. Anhui Jinhe Industrial |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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