Correlation Between Tsingtao Brewery and Chinese Universe
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By analyzing existing cross correlation between Tsingtao Brewery Co and Chinese Universe Publishing, you can compare the effects of market volatilities on Tsingtao Brewery and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Chinese Universe.
Diversification Opportunities for Tsingtao Brewery and Chinese Universe
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tsingtao and Chinese is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Chinese Universe go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Chinese Universe
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 1.19 times more return on investment than Chinese Universe. However, Tsingtao Brewery is 1.19 times more volatile than Chinese Universe Publishing. It trades about 0.08 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.04 per unit of risk. If you would invest 5,783 in Tsingtao Brewery Co on November 2, 2024 and sell it today you would earn a total of 1,169 from holding Tsingtao Brewery Co or generate 20.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Chinese Universe Publishing
Performance |
| Timeline |
| Tsingtao Brewery |
| Chinese Universe Pub |
Tsingtao Brewery and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Chinese Universe
The main advantage of trading using opposite Tsingtao Brewery and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Tsingtao Brewery vs. Guangzhou Dongfang Hotel | Tsingtao Brewery vs. Ye Chiu Metal | Tsingtao Brewery vs. Tongling Nonferrous Metals | Tsingtao Brewery vs. Jinling Hotel Corp |
| Chinese Universe vs. Nanjing OLO Home | Chinese Universe vs. Zoy Home Furnishing | Chinese Universe vs. Ziel Home Furnishing | Chinese Universe vs. Linewell Software 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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