Correlation Between Tsingtao Brewery and Shanghai Jinfeng
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By analyzing existing cross correlation between Tsingtao Brewery Co and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Tsingtao Brewery and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Shanghai Jinfeng.
Diversification Opportunities for Tsingtao Brewery and Shanghai Jinfeng
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tsingtao and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Shanghai Jinfeng
Assuming the 90 days trading horizon Tsingtao Brewery is expected to generate 1.55 times less return on investment than Shanghai Jinfeng. But when comparing it to its historical volatility, Tsingtao Brewery Co is 1.09 times less risky than Shanghai Jinfeng. It trades about 0.15 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 538.00 in Shanghai Jinfeng Wine on September 4, 2024 and sell it today you would earn a total of 67.00 from holding Shanghai Jinfeng Wine or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Tsingtao Brewery |
| Shanghai Jinfeng Wine |
Tsingtao Brewery and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Shanghai Jinfeng
The main advantage of trading using opposite Tsingtao Brewery and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Tsingtao Brewery vs. CITIC Guoan Information | Tsingtao Brewery vs. Xiamen Goldenhome Co | Tsingtao Brewery vs. Nanxing Furniture Machinery | Tsingtao Brewery vs. Longmaster Information Tech |
| Shanghai Jinfeng vs. Industrial and Commercial | Shanghai Jinfeng vs. Agricultural Bank of | Shanghai Jinfeng vs. China Construction Bank | Shanghai Jinfeng vs. Bank of China |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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