Correlation Between Tsingtao Brewery and China Petroleum
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By analyzing existing cross correlation between Tsingtao Brewery Co and China Petroleum Chemical, you can compare the effects of market volatilities on Tsingtao Brewery and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and China Petroleum.
Diversification Opportunities for Tsingtao Brewery and China Petroleum
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tsingtao and China is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and China Petroleum go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and China Petroleum
Assuming the 90 days trading horizon Tsingtao Brewery is expected to generate 5.18 times less return on investment than China Petroleum. In addition to that, Tsingtao Brewery is 1.36 times more volatile than China Petroleum Chemical. It trades about 0.01 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.05 per unit of volatility. If you would invest 548.00 in China Petroleum Chemical on August 29, 2024 and sell it today you would earn a total of 88.00 from holding China Petroleum Chemical or generate 16.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. China Petroleum Chemical
Performance |
| Timeline |
| Tsingtao Brewery |
| China Petroleum Chemical |
Tsingtao Brewery and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and China Petroleum
The main advantage of trading using opposite Tsingtao Brewery and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Tsingtao Brewery vs. PetroChina Co Ltd | Tsingtao Brewery vs. China Mobile Limited | Tsingtao Brewery vs. Ping An Insurance | Tsingtao Brewery vs. China Petroleum Chemical |
| China Petroleum vs. Anhui Huilong Agricultural | China Petroleum vs. Chinese Universe Publishing | China Petroleum vs. Shanghai Action Education | China Petroleum vs. Time Publishing and |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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