Correlation Between GREENX METALS and Tsingtao Brewery
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Tsingtao Brewery at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GREENX METALS and Tsingtao Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Tsingtao Brewery, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Tsingtao Brewery.
Diversification Opportunities for GREENX METALS and Tsingtao Brewery
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between GREENX and Tsingtao is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between GREENX METALS and Tsingtao Brewery
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 2.49 times more return on investment than Tsingtao Brewery. However, GREENX METALS is 2.49 times more volatile than Tsingtao Brewery. It trades about 0.06 of its potential returns per unit of risk. Tsingtao Brewery is currently generating about -0.04 per unit of risk. If you would invest 40.00 in GREENX METALS LTD on October 20, 2024 and sell it today you would earn a total of 1.00 from holding GREENX METALS LTD or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Tsingtao Brewery
Performance |
| Timeline |
| GREENX METALS LTD |
| Tsingtao Brewery |
GREENX METALS and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Tsingtao Brewery
The main advantage of trading using opposite GREENX METALS and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. Commercial Vehicle Group | GREENX METALS vs. VARIOUS EATERIES LS | GREENX METALS vs. AEGEAN AIRLINES | GREENX METALS vs. Nok Airlines PCL |
| Tsingtao Brewery vs. GungHo Online Entertainment | Tsingtao Brewery vs. GREENX METALS LTD | Tsingtao Brewery vs. Osisko Metals | Tsingtao Brewery vs. ARDAGH METAL PACDL 0001 |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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