Correlation Between Tsingtao Brewery and Guangzhou Zhujiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tsingtao Brewery Co and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Tsingtao Brewery and Guangzhou Zhujiang 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 Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Guangzhou Zhujiang.
Diversification Opportunities for Tsingtao Brewery and Guangzhou Zhujiang
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tsingtao and Guangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang 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 Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Guangzhou Zhujiang
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 1.52 times more return on investment than Guangzhou Zhujiang. However, Tsingtao Brewery is 1.52 times more volatile than Guangzhou Zhujiang Brewery. It trades about 0.16 of its potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.07 per unit of risk. If you would invest 6,780 in Tsingtao Brewery Co on September 4, 2024 and sell it today you would earn a total of 559.00 from holding Tsingtao Brewery Co or generate 8.24% 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. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Tsingtao Brewery |
| Guangzhou Zhujiang |
Tsingtao Brewery and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Guangzhou Zhujiang
The main advantage of trading using opposite Tsingtao Brewery and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Tsingtao Brewery vs. CITIC Guoan Information | Tsingtao Brewery vs. Xiamen Goldenhome Co | Tsingtao Brewery vs. Nanxing Furniture Machinery | Tsingtao Brewery vs. Longmaster Information Tech |
| Guangzhou Zhujiang vs. Hefei Metalforming Mach | Guangzhou Zhujiang vs. Jiangsu Yanghe Brewery | Guangzhou Zhujiang vs. Ye Chiu Metal | Guangzhou Zhujiang vs. Liuzhou Chemical Industry |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |