Correlation Between Tsingtao Brewery and Beijing Yanjing
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By analyzing existing cross correlation between Tsingtao Brewery Co and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Tsingtao Brewery and Beijing Yanjing 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 Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Beijing Yanjing.
Diversification Opportunities for Tsingtao Brewery and Beijing Yanjing
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tsingtao and Beijing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Beijing Yanjing Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yanjing Brewery 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 Beijing Yanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yanjing Brewery has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Beijing Yanjing
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to under-perform the Beijing Yanjing. In addition to that, Tsingtao Brewery is 1.01 times more volatile than Beijing Yanjing Brewery. It trades about -0.03 of its total potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.01 per unit of volatility. If you would invest 1,056 in Beijing Yanjing Brewery on August 30, 2024 and sell it today you would lose (37.00) from holding Beijing Yanjing Brewery or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Tsingtao Brewery |
| Beijing Yanjing Brewery |
Tsingtao Brewery and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Beijing Yanjing
The main advantage of trading using opposite Tsingtao Brewery and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Beijing Yanjing 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 Beijing Yanjing will offset losses from the drop in Beijing Yanjing's long position.| Tsingtao Brewery vs. PetroChina Co Ltd | Tsingtao Brewery vs. China Mobile Limited | Tsingtao Brewery vs. Ping An Insurance | Tsingtao Brewery vs. China Petroleum Chemical |
| Beijing Yanjing vs. PetroChina Co Ltd | Beijing Yanjing vs. China Mobile Limited | Beijing Yanjing vs. Ping An Insurance | Beijing Yanjing vs. China Petroleum Chemical |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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