Correlation Between Tsingtao Brewery and Tonghua Grape
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tsingtao Brewery Co and Tonghua Grape Wine, you can compare the effects of market volatilities on Tsingtao Brewery and Tonghua Grape 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 Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Tonghua Grape.
Diversification Opportunities for Tsingtao Brewery and Tonghua Grape
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tsingtao and Tonghua is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine 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 Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Tonghua Grape go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Tonghua Grape
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 0.96 times more return on investment than Tonghua Grape. However, Tsingtao Brewery Co is 1.05 times less risky than Tonghua Grape. It trades about 0.01 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about -0.03 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Tonghua Grape Wine
Performance |
| Timeline |
| Tsingtao Brewery |
| Tonghua Grape Wine |
Tsingtao Brewery and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Tonghua Grape
The main advantage of trading using opposite Tsingtao Brewery and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape'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 |
| Tonghua Grape vs. BYD Co Ltd | Tonghua Grape vs. China Mobile Limited | Tonghua Grape vs. Agricultural Bank of | Tonghua Grape vs. Industrial and Commercial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |