Correlation Between Tsingtao Brewery and Cowealth Medical
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By analyzing existing cross correlation between Tsingtao Brewery Co and Cowealth Medical China, you can compare the effects of market volatilities on Tsingtao Brewery and Cowealth Medical 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 Cowealth Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Cowealth Medical.
Diversification Opportunities for Tsingtao Brewery and Cowealth Medical
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tsingtao and Cowealth is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Cowealth Medical China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowealth Medical China 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 Cowealth Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowealth Medical China has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Cowealth Medical go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Cowealth Medical
Assuming the 90 days trading horizon Tsingtao Brewery is expected to generate 16.49 times less return on investment than Cowealth Medical. But when comparing it to its historical volatility, Tsingtao Brewery Co is 1.82 times less risky than Cowealth Medical. It trades about 0.01 of its potential returns per unit of risk. Cowealth Medical China is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 720.00 in Cowealth Medical China on August 29, 2024 and sell it today you would earn a total of 33.00 from holding Cowealth Medical China or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Cowealth Medical China
Performance |
| Timeline |
| Tsingtao Brewery |
| Cowealth Medical China |
Tsingtao Brewery and Cowealth Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Cowealth Medical
The main advantage of trading using opposite Tsingtao Brewery and Cowealth Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Cowealth Medical 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 Cowealth Medical will offset losses from the drop in Cowealth Medical'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 |
| Cowealth Medical vs. Industrial and Commercial | Cowealth Medical vs. China Construction Bank | Cowealth Medical vs. Agricultural Bank of | Cowealth Medical 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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