Correlation Between Tsingtao Brewery and Hengli Industrial
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By analyzing existing cross correlation between Tsingtao Brewery Co and Hengli Industrial Development, you can compare the effects of market volatilities on Tsingtao Brewery and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Hengli Industrial.
Diversification Opportunities for Tsingtao Brewery and Hengli Industrial
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tsingtao and Hengli is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Hengli Industrial go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Hengli Industrial
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 0.61 times more return on investment than Hengli Industrial. However, Tsingtao Brewery Co is 1.65 times less risky than Hengli Industrial. It trades about -0.02 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.03 per unit of risk. If you would invest 10,298 in Tsingtao Brewery Co on October 12, 2024 and sell it today you would lose (2,732) from holding Tsingtao Brewery Co or give up 26.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Hengli Industrial Development
Performance |
| Timeline |
| Tsingtao Brewery |
| Hengli Industrial |
Tsingtao Brewery and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Hengli Industrial
The main advantage of trading using opposite Tsingtao Brewery and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Tsingtao Brewery vs. Nanxing Furniture Machinery | Tsingtao Brewery vs. Vohringer Home Technology | Tsingtao Brewery vs. Northern United Publishing | Tsingtao Brewery vs. Mengtian Home Group |
| Hengli Industrial vs. PKU HealthCare Corp | Hengli Industrial vs. De Rucci Healthy | Hengli Industrial vs. Sunny Loan Top | Hengli Industrial vs. Lotus Health Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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