Correlation Between Tsingtao Brewery and Jiangsu Broadcasting
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By analyzing existing cross correlation between Tsingtao Brewery Co and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Tsingtao Brewery and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Jiangsu Broadcasting.
Diversification Opportunities for Tsingtao Brewery and Jiangsu Broadcasting
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tsingtao and Jiangsu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Jiangsu Broadcasting
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 1.37 times more return on investment than Jiangsu Broadcasting. However, Tsingtao Brewery is 1.37 times more volatile than Jiangsu Broadcasting Cable. It trades about 0.15 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.18 per unit of risk. If you would invest 6,780 in Tsingtao Brewery Co on September 3, 2024 and sell it today you would earn a total of 518.00 from holding Tsingtao Brewery Co or generate 7.64% 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. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Tsingtao Brewery |
| Jiangsu Broadcasting |
Tsingtao Brewery and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Jiangsu Broadcasting
The main advantage of trading using opposite Tsingtao Brewery and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| Tsingtao Brewery vs. Agricultural Bank of | Tsingtao Brewery vs. Jiangxi Naipu Mining | Tsingtao Brewery vs. Pengxin International Mining | Tsingtao Brewery vs. Guocheng Mining 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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