Correlation Between Tsingtao Brewery and HMTNew Technical
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By analyzing existing cross correlation between Tsingtao Brewery Co and HMTNew Technical, you can compare the effects of market volatilities on Tsingtao Brewery and HMTNew Technical 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 HMTNew Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and HMTNew Technical.
Diversification Opportunities for Tsingtao Brewery and HMTNew Technical
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tsingtao and HMTNew is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and HMTNew Technical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMTNew Technical 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 HMTNew Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMTNew Technical has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and HMTNew Technical go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and HMTNew Technical
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to under-perform the HMTNew Technical. But the stock apears to be less risky and, when comparing its historical volatility, Tsingtao Brewery Co is 2.12 times less risky than HMTNew Technical. The stock trades about -0.07 of its potential returns per unit of risk. The HMTNew Technical is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,222 in HMTNew Technical on November 3, 2024 and sell it today you would earn a total of 645.00 from holding HMTNew Technical or generate 20.02% 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. HMTNew Technical
Performance |
| Timeline |
| Tsingtao Brewery |
| HMTNew Technical |
Tsingtao Brewery and HMTNew Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and HMTNew Technical
The main advantage of trading using opposite Tsingtao Brewery and HMTNew Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, HMTNew Technical 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 HMTNew Technical will offset losses from the drop in HMTNew Technical's long position.| Tsingtao Brewery vs. Western Mining Co | Tsingtao Brewery vs. Shenzhen Topway Video | Tsingtao Brewery vs. Zhejiang Kingland Pipeline | Tsingtao Brewery vs. Chenzhou Jingui Silver |
| HMTNew Technical vs. Grandblue Environment Co | HMTNew Technical vs. Eyebright Medical Technology | HMTNew Technical vs. Sinosteel Engineering and | HMTNew Technical vs. Shenzhen MYS Environmental |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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