Correlation Between Saurer Intelligent and Tsingtao Brewery
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By analyzing existing cross correlation between Saurer Intelligent Technology and Tsingtao Brewery Co, you can compare the effects of market volatilities on Saurer Intelligent 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 Saurer Intelligent with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saurer Intelligent and Tsingtao Brewery.
Diversification Opportunities for Saurer Intelligent and Tsingtao Brewery
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saurer and Tsingtao is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Saurer Intelligent Technology and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Saurer Intelligent 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 Saurer Intelligent Technology 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 Saurer Intelligent i.e., Saurer Intelligent and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Saurer Intelligent and Tsingtao Brewery
Assuming the 90 days trading horizon Saurer Intelligent Technology is expected to generate 3.37 times more return on investment than Tsingtao Brewery. However, Saurer Intelligent is 3.37 times more volatile than Tsingtao Brewery Co. It trades about 0.39 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 219.00 in Saurer Intelligent Technology on September 12, 2024 and sell it today you would earn a total of 112.00 from holding Saurer Intelligent Technology or generate 51.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saurer Intelligent Technology vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Saurer Intelligent |
| Tsingtao Brewery |
Saurer Intelligent and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saurer Intelligent and Tsingtao Brewery
The main advantage of trading using opposite Saurer Intelligent and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saurer Intelligent 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.| Saurer Intelligent vs. Agricultural Bank of | Saurer Intelligent vs. Industrial and Commercial | Saurer Intelligent vs. Bank of China | Saurer Intelligent vs. PetroChina Co Ltd |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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