Correlation Between Tsingtao Brewery and XinJiang GuoTong
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By analyzing existing cross correlation between Tsingtao Brewery Co and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Tsingtao Brewery and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and XinJiang GuoTong.
Diversification Opportunities for Tsingtao Brewery and XinJiang GuoTong
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tsingtao and XinJiang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and XinJiang GuoTong
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 0.69 times more return on investment than XinJiang GuoTong. However, Tsingtao Brewery Co is 1.46 times less risky than XinJiang GuoTong. It trades about 0.01 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.0 per unit of risk. If you would invest 7,160 in Tsingtao Brewery Co on September 2, 2024 and sell it today you would earn a total of 138.00 from holding Tsingtao Brewery Co or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Tsingtao Brewery |
| XinJiang GuoTong Pipeline |
Tsingtao Brewery and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and XinJiang GuoTong
The main advantage of trading using opposite Tsingtao Brewery and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Tsingtao Brewery vs. Guangdong Qunxing Toys | Tsingtao Brewery vs. Miracll Chemicals Co | Tsingtao Brewery vs. Ningxia Younglight Chemicals | Tsingtao Brewery vs. Shandong Polymer Biochemicals |
| XinJiang GuoTong vs. Suzhou Mingzhi Technology | XinJiang GuoTong vs. Jiangxi Hengda Hi Tech | XinJiang GuoTong vs. Glodon Software Co | XinJiang GuoTong vs. Linewell Software Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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