Correlation Between Tsingtao Brewery and State Grid
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By analyzing existing cross correlation between Tsingtao Brewery Co and State Grid InformationCommunication, you can compare the effects of market volatilities on Tsingtao Brewery and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and State Grid.
Diversification Opportunities for Tsingtao Brewery and State Grid
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tsingtao and State is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and State Grid go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and State Grid
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 0.66 times more return on investment than State Grid. However, Tsingtao Brewery Co is 1.52 times less risky than State Grid. It trades about 0.2 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about -0.17 per unit of risk. If you would invest 7,392 in Tsingtao Brewery Co on September 14, 2024 and sell it today you would earn a total of 599.00 from holding Tsingtao Brewery Co or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. State Grid InformationCommunic
Performance |
| Timeline |
| Tsingtao Brewery |
| State Grid Informati |
Tsingtao Brewery and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and State Grid
The main advantage of trading using opposite Tsingtao Brewery and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Tsingtao Brewery vs. Industrial and Commercial | Tsingtao Brewery vs. Kweichow Moutai Co | Tsingtao Brewery vs. Agricultural Bank of | Tsingtao Brewery vs. China Mobile Limited |
| State Grid vs. Jiangsu Yanghe Brewery | State Grid vs. Harbin Air Conditioning | State Grid vs. Eastern Air Logistics | State Grid vs. Tsingtao Brewery 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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