Correlation Between Hunan Mendale and Tsingtao Brewery
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Tsingtao Brewery Co, you can compare the effects of market volatilities on Hunan Mendale 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 Hunan Mendale with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Tsingtao Brewery.
Diversification Opportunities for Hunan Mendale and Tsingtao Brewery
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Tsingtao is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Hunan Mendale 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 Hunan Mendale Hometextile 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 Hunan Mendale i.e., Hunan Mendale and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Hunan Mendale and Tsingtao Brewery
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 1.65 times more return on investment than Tsingtao Brewery. However, Hunan Mendale is 1.65 times more volatile than Tsingtao Brewery Co. It trades about 0.02 of its potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.03 per unit of risk. If you would invest 311.00 in Hunan Mendale Hometextile on October 18, 2024 and sell it today you would earn a total of 0.00 from holding Hunan Mendale Hometextile or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Tsingtao Brewery |
Hunan Mendale and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Tsingtao Brewery
The main advantage of trading using opposite Hunan Mendale and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale 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.| Hunan Mendale vs. China Mobile Limited | Hunan Mendale vs. Songz Automobile Air | Hunan Mendale vs. State Grid InformationCommunication | Hunan Mendale vs. Dongfeng Automobile Co |
| Tsingtao Brewery vs. Vohringer Home Technology | Tsingtao Brewery vs. China Eastern Airlines | Tsingtao Brewery vs. CSSC Offshore Marine | Tsingtao Brewery vs. Fiberhome Telecommunication Technologies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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