Correlation Between Tsingtao Brewery and Changsha Jingjia
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By analyzing existing cross correlation between Tsingtao Brewery Co and Changsha Jingjia Microelectronics, you can compare the effects of market volatilities on Tsingtao Brewery and Changsha Jingjia 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 Changsha Jingjia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Changsha Jingjia.
Diversification Opportunities for Tsingtao Brewery and Changsha Jingjia
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tsingtao and Changsha is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Changsha Jingjia Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha Jingjia Mic 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 Changsha Jingjia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha Jingjia Mic has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Changsha Jingjia go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Changsha Jingjia
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to under-perform the Changsha Jingjia. But the stock apears to be less risky and, when comparing its historical volatility, Tsingtao Brewery Co is 1.81 times less risky than Changsha Jingjia. The stock trades about -0.03 of its potential returns per unit of risk. The Changsha Jingjia Microelectronics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,639 in Changsha Jingjia Microelectronics on October 19, 2024 and sell it today you would earn a total of 1,410 from holding Changsha Jingjia Microelectronics or generate 18.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Changsha Jingjia Microelectron
Performance |
| Timeline |
| Tsingtao Brewery |
| Changsha Jingjia Mic |
Tsingtao Brewery and Changsha Jingjia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Changsha Jingjia
The main advantage of trading using opposite Tsingtao Brewery and Changsha Jingjia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Changsha Jingjia 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 Changsha Jingjia will offset losses from the drop in Changsha Jingjia's long position.| Tsingtao Brewery vs. Vohringer Home Technology | Tsingtao Brewery vs. China Eastern Airlines | Tsingtao Brewery vs. CSSC Offshore Marine | Tsingtao Brewery vs. Fiberhome Telecommunication Technologies |
| Changsha Jingjia vs. Eastroc Beverage Group | Changsha Jingjia vs. Tsingtao Brewery Co | Changsha Jingjia vs. Xiamen Jihong Package | Changsha Jingjia vs. Great Sun Foods 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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