Correlation Between Tsingtao Brewery and Cofoe Medical
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By analyzing existing cross correlation between Tsingtao Brewery Co and Cofoe Medical Technology, you can compare the effects of market volatilities on Tsingtao Brewery and Cofoe Medical 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 Cofoe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Cofoe Medical.
Diversification Opportunities for Tsingtao Brewery and Cofoe Medical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tsingtao and Cofoe is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Cofoe Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofoe Medical Technology 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 Cofoe Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofoe Medical Technology has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Cofoe Medical go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Cofoe Medical
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 1.33 times more return on investment than Cofoe Medical. However, Tsingtao Brewery is 1.33 times more volatile than Cofoe Medical Technology. It trades about 0.01 of its potential returns per unit of risk. Cofoe Medical Technology is currently generating about -0.14 per unit of risk. If you would invest 7,056 in Tsingtao Brewery Co on August 29, 2024 and sell it today you would lose (15.00) from holding Tsingtao Brewery Co or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Cofoe Medical Technology
Performance |
| Timeline |
| Tsingtao Brewery |
| Cofoe Medical Technology |
Tsingtao Brewery and Cofoe Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Cofoe Medical
The main advantage of trading using opposite Tsingtao Brewery and Cofoe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Cofoe Medical 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 Cofoe Medical will offset losses from the drop in Cofoe Medical's long position.| Tsingtao Brewery vs. China Petroleum Chemical | Tsingtao Brewery vs. PetroChina Co Ltd | Tsingtao Brewery vs. China State Construction | Tsingtao Brewery vs. China Railway Group |
| Cofoe Medical vs. Bank of China | Cofoe Medical vs. Kweichow Moutai Co | Cofoe Medical vs. PetroChina Co Ltd | Cofoe Medical vs. Bank of Communications |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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