Correlation Between Tsingtao Brewery and Beijing UniStrong
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By analyzing existing cross correlation between Tsingtao Brewery Co and Beijing UniStrong Science, you can compare the effects of market volatilities on Tsingtao Brewery and Beijing UniStrong 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 UniStrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Beijing UniStrong.
Diversification Opportunities for Tsingtao Brewery and Beijing UniStrong
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tsingtao and Beijing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Beijing UniStrong Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing UniStrong Science 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 UniStrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing UniStrong Science has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Beijing UniStrong go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Beijing UniStrong
Assuming the 90 days trading horizon Tsingtao Brewery is expected to generate 3.71 times less return on investment than Beijing UniStrong. But when comparing it to its historical volatility, Tsingtao Brewery Co is 1.92 times less risky than Beijing UniStrong. It trades about 0.19 of its potential returns per unit of risk. Beijing UniStrong Science is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 862.00 in Beijing UniStrong Science on September 16, 2024 and sell it today you would earn a total of 272.00 from holding Beijing UniStrong Science or generate 31.55% 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. Beijing UniStrong Science
Performance |
| Timeline |
| Tsingtao Brewery |
| Beijing UniStrong Science |
Tsingtao Brewery and Beijing UniStrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Beijing UniStrong
The main advantage of trading using opposite Tsingtao Brewery and Beijing UniStrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Beijing UniStrong 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 UniStrong will offset losses from the drop in Beijing UniStrong's long position.| Tsingtao Brewery vs. Tianjin Capital Environmental | Tsingtao Brewery vs. Sinocat Environmental Technology | Tsingtao Brewery vs. Zoje Resources Investment | Tsingtao Brewery vs. Qiaoyin Environmental Tech |
| Beijing UniStrong vs. Tibet Huayu Mining | Beijing UniStrong vs. Tsingtao Brewery Co | Beijing UniStrong vs. Shanghai Metersbonwe FashionAccessories | Beijing UniStrong vs. Minmetals Capital 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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