Correlation Between Beijing Yuanlong and Tsingtao Brewery
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By analyzing existing cross correlation between Beijing Yuanlong Yato and Tsingtao Brewery Co, you can compare the effects of market volatilities on Beijing Yuanlong 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 Beijing Yuanlong with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yuanlong and Tsingtao Brewery.
Diversification Opportunities for Beijing Yuanlong and Tsingtao Brewery
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Tsingtao is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yuanlong Yato and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Beijing Yuanlong 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 Beijing Yuanlong Yato 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 Beijing Yuanlong i.e., Beijing Yuanlong and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Beijing Yuanlong and Tsingtao Brewery
Assuming the 90 days trading horizon Beijing Yuanlong Yato is expected to generate 2.11 times more return on investment than Tsingtao Brewery. However, Beijing Yuanlong is 2.11 times more volatile than Tsingtao Brewery Co. It trades about 0.3 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 1,186 in Beijing Yuanlong Yato on September 3, 2024 and sell it today you would earn a total of 426.00 from holding Beijing Yuanlong Yato or generate 35.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yuanlong Yato vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Beijing Yuanlong Yato |
| Tsingtao Brewery |
Beijing Yuanlong and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yuanlong and Tsingtao Brewery
The main advantage of trading using opposite Beijing Yuanlong and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yuanlong 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.| Beijing Yuanlong vs. Tsingtao Brewery Co | Beijing Yuanlong vs. Shuhua Sports Co | Beijing Yuanlong vs. Zhejiang Daily Media | Beijing Yuanlong vs. Ciwen Media Co |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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