Correlation Between Tsingtao Brewery and Beijing SuperMap
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By analyzing existing cross correlation between Tsingtao Brewery Co and Beijing SuperMap Software, you can compare the effects of market volatilities on Tsingtao Brewery and Beijing SuperMap 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 SuperMap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Beijing SuperMap.
Diversification Opportunities for Tsingtao Brewery and Beijing SuperMap
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tsingtao and Beijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Beijing SuperMap Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SuperMap Software 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 SuperMap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SuperMap Software has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Beijing SuperMap go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Beijing SuperMap
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 0.76 times more return on investment than Beijing SuperMap. However, Tsingtao Brewery Co is 1.31 times less risky than Beijing SuperMap. It trades about 0.15 of its potential returns per unit of risk. Beijing SuperMap Software is currently generating about -0.02 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 524.00 from holding Tsingtao Brewery Co or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Beijing SuperMap Software
Performance |
| Timeline |
| Tsingtao Brewery |
| Beijing SuperMap Software |
Tsingtao Brewery and Beijing SuperMap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Beijing SuperMap
The main advantage of trading using opposite Tsingtao Brewery and Beijing SuperMap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Beijing SuperMap 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 SuperMap will offset losses from the drop in Beijing SuperMap'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 |
| Beijing SuperMap vs. Tsingtao Brewery Co | Beijing SuperMap vs. Panda Financial Holding | Beijing SuperMap vs. Qilu Bank Co | Beijing SuperMap vs. HeNan Splendor Science |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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