Correlation Between Tsingtao Brewery and Maoming Petro
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By analyzing existing cross correlation between Tsingtao Brewery Co and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Tsingtao Brewery and Maoming Petro 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 Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Maoming Petro.
Diversification Opportunities for Tsingtao Brewery and Maoming Petro
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tsingtao and Maoming is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical 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 Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Maoming Petro go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Maoming Petro
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 0.81 times more return on investment than Maoming Petro. However, Tsingtao Brewery Co is 1.23 times less risky than Maoming Petro. It trades about 0.0 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.01 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Tsingtao Brewery |
| Maoming Petro Chemical |
Tsingtao Brewery and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Maoming Petro
The main advantage of trading using opposite Tsingtao Brewery and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro'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 |
| Maoming Petro vs. Fibocom Wireless | Maoming Petro vs. Jilin Jlu Communication | Maoming Petro vs. Beijing Bewinner Communications | Maoming Petro vs. China Mobile Limited |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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