Correlation Between Jinlong Machinery and Tsingtao Brewery
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Tsingtao Brewery Co, you can compare the effects of market volatilities on Jinlong Machinery 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 Jinlong Machinery with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Tsingtao Brewery.
Diversification Opportunities for Jinlong Machinery and Tsingtao Brewery
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jinlong and Tsingtao is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Jinlong Machinery 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 Jinlong Machinery Electronic 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 Jinlong Machinery i.e., Jinlong Machinery and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Tsingtao Brewery
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Tsingtao Brewery. In addition to that, Jinlong Machinery is 2.12 times more volatile than Tsingtao Brewery Co. It trades about -0.3 of its total potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.08 per unit of volatility. If you would invest 7,420 in Tsingtao Brewery Co on October 11, 2024 and sell it today you would earn a total of 220.00 from holding Tsingtao Brewery Co or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Jinlong Machinery |
| Tsingtao Brewery |
Jinlong Machinery and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Tsingtao Brewery
The main advantage of trading using opposite Jinlong Machinery and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery 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.| Jinlong Machinery vs. Financial Street Holdings | Jinlong Machinery vs. Ping An Insurance | Jinlong Machinery vs. Panda Financial Holding | Jinlong Machinery vs. GRG Banking Equipment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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