Correlation Between Heren Health and Tsingtao Brewery
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By analyzing existing cross correlation between Heren Health Co and Tsingtao Brewery Co, you can compare the effects of market volatilities on Heren Health 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 Heren Health with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heren Health and Tsingtao Brewery.
Diversification Opportunities for Heren Health and Tsingtao Brewery
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Heren and Tsingtao is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Heren Health Co and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Heren Health 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 Heren Health Co 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 Heren Health i.e., Heren Health and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Heren Health and Tsingtao Brewery
Assuming the 90 days trading horizon Heren Health Co is expected to generate 1.86 times more return on investment than Tsingtao Brewery. However, Heren Health is 1.86 times more volatile than Tsingtao Brewery Co. It trades about 0.01 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 1,543 in Heren Health Co on August 31, 2024 and sell it today you would lose (126.00) from holding Heren Health Co or give up 8.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heren Health Co vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Heren Health |
| Tsingtao Brewery |
Heren Health and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heren Health and Tsingtao Brewery
The main advantage of trading using opposite Heren Health and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heren Health 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.| Heren Health vs. PetroChina Co Ltd | Heren Health vs. China Mobile Limited | Heren Health vs. Ping An Insurance | Heren Health vs. China Petroleum Chemical |
| Tsingtao Brewery vs. Lutian Machinery Co | Tsingtao Brewery vs. PetroChina Co Ltd | Tsingtao Brewery vs. Bank of China | Tsingtao Brewery vs. Gansu Jiu Steel |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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