Correlation Between Tsingtao Brewery and Jiaozuo Wanfang
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By analyzing existing cross correlation between Tsingtao Brewery Co and Jiaozuo Wanfang Aluminum, you can compare the effects of market volatilities on Tsingtao Brewery and Jiaozuo Wanfang 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 Tsingtao Brewery with a short position of Jiaozuo Wanfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Jiaozuo Wanfang.
Diversification Opportunities for Tsingtao Brewery and Jiaozuo Wanfang
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tsingtao and Jiaozuo is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Jiaozuo Wanfang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiaozuo Wanfang Aluminum and Tsingtao Brewery 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 Tsingtao Brewery Co are associated (or correlated) with Jiaozuo Wanfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiaozuo Wanfang Aluminum has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Jiaozuo Wanfang go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Jiaozuo Wanfang
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 0.83 times more return on investment than Jiaozuo Wanfang. However, Tsingtao Brewery Co is 1.2 times less risky than Jiaozuo Wanfang. It trades about 0.0 of its potential returns per unit of risk. Jiaozuo Wanfang Aluminum is currently generating about -0.04 per unit of risk. If you would invest 7,056 in Tsingtao Brewery Co on October 26, 2024 and sell it today you would lose (99.00) from holding Tsingtao Brewery Co or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Jiaozuo Wanfang Aluminum
Performance |
| Timeline |
| Tsingtao Brewery |
| Jiaozuo Wanfang Aluminum |
Tsingtao Brewery and Jiaozuo Wanfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Jiaozuo Wanfang
The main advantage of trading using opposite Tsingtao Brewery and Jiaozuo Wanfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Jiaozuo Wanfang 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 Jiaozuo Wanfang will offset losses from the drop in Jiaozuo Wanfang's long position.| Tsingtao Brewery vs. Qingdao Choho Industrial | Tsingtao Brewery vs. Nanxing Furniture Machinery | Tsingtao Brewery vs. Guocheng Mining Co | Tsingtao Brewery vs. Anhui Jinhe Industrial |
| Jiaozuo Wanfang vs. Tsingtao Brewery Co | Jiaozuo Wanfang vs. Shandong Longquan Pipeline | Jiaozuo Wanfang vs. Maoming Petro Chemical Shihua | Jiaozuo Wanfang vs. XinJiang GuoTong Pipeline |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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