Correlation Between Tsingtao Brewery and Guangzhou Shangpin
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By analyzing existing cross correlation between Tsingtao Brewery Co and Guangzhou Shangpin Home, you can compare the effects of market volatilities on Tsingtao Brewery and Guangzhou Shangpin 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 Shangpin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Guangzhou Shangpin.
Diversification Opportunities for Tsingtao Brewery and Guangzhou Shangpin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tsingtao and Guangzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Guangzhou Shangpin Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shangpin Home 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 Shangpin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shangpin Home has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Guangzhou Shangpin go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Guangzhou Shangpin
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 0.83 times more return on investment than Guangzhou Shangpin. However, Tsingtao Brewery Co is 1.2 times less risky than Guangzhou Shangpin. It trades about -0.34 of its potential returns per unit of risk. Guangzhou Shangpin Home is currently generating about -0.31 per unit of risk. If you would invest 7,924 in Tsingtao Brewery Co on October 25, 2024 and sell it today you would lose (953.00) from holding Tsingtao Brewery Co or give up 12.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Guangzhou Shangpin Home
Performance |
| Timeline |
| Tsingtao Brewery |
| Guangzhou Shangpin Home |
Tsingtao Brewery and Guangzhou Shangpin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Guangzhou Shangpin
The main advantage of trading using opposite Tsingtao Brewery and Guangzhou Shangpin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Guangzhou Shangpin 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 Shangpin will offset losses from the drop in Guangzhou Shangpin's long position.| Tsingtao Brewery vs. Agricultural Bank of | Tsingtao Brewery vs. Postal Savings Bank | Tsingtao Brewery vs. Bank of Communications | Tsingtao Brewery vs. China Merchants Bank |
| Guangzhou Shangpin vs. PetroChina Co Ltd | Guangzhou Shangpin vs. Gansu Jiu Steel | Guangzhou Shangpin vs. Ming Yang Smart | Guangzhou Shangpin vs. Aba Chemicals Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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