Correlation Between Dalian Zeus and Tsingtao Brewery
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By analyzing existing cross correlation between Dalian Zeus Entertainment and Tsingtao Brewery Co, you can compare the effects of market volatilities on Dalian Zeus 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 Dalian Zeus with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Zeus and Tsingtao Brewery.
Diversification Opportunities for Dalian Zeus and Tsingtao Brewery
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dalian and Tsingtao is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Zeus Entertainment and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Dalian Zeus 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 Dalian Zeus Entertainment 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 Dalian Zeus i.e., Dalian Zeus and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Dalian Zeus and Tsingtao Brewery
Assuming the 90 days trading horizon Dalian Zeus Entertainment is expected to generate 2.14 times more return on investment than Tsingtao Brewery. However, Dalian Zeus is 2.14 times more volatile than Tsingtao Brewery Co. It trades about 0.27 of its potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.15 per unit of risk. If you would invest 371.00 in Dalian Zeus Entertainment on September 3, 2024 and sell it today you would earn a total of 119.00 from holding Dalian Zeus Entertainment or generate 32.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Zeus Entertainment vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Dalian Zeus Entertainment |
| Tsingtao Brewery |
Dalian Zeus and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Zeus and Tsingtao Brewery
The main advantage of trading using opposite Dalian Zeus and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Zeus 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.| Dalian Zeus vs. Gansu Jiu Steel | Dalian Zeus vs. Ming Yang Smart | Dalian Zeus vs. Aba Chemicals Corp | Dalian Zeus vs. Loctek Ergonomic Technology |
| Tsingtao Brewery vs. Agricultural Bank of | Tsingtao Brewery vs. Jiangxi Naipu Mining | Tsingtao Brewery vs. Pengxin International Mining | Tsingtao Brewery vs. Guocheng Mining Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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