Correlation Between Tsingtao Brewery and Beijing Kingsoft
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By analyzing existing cross correlation between Tsingtao Brewery Co and Beijing Kingsoft Office, you can compare the effects of market volatilities on Tsingtao Brewery and Beijing Kingsoft 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 Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Beijing Kingsoft.
Diversification Opportunities for Tsingtao Brewery and Beijing Kingsoft
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tsingtao and Beijing is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Beijing Kingsoft Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kingsoft Office 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 Beijing Kingsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kingsoft Office has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Beijing Kingsoft
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 0.5 times more return on investment than Beijing Kingsoft. However, Tsingtao Brewery Co is 2.0 times less risky than Beijing Kingsoft. It trades about -0.12 of its potential returns per unit of risk. Beijing Kingsoft Office is currently generating about -0.17 per unit of risk. If you would invest 7,800 in Tsingtao Brewery Co on October 17, 2024 and sell it today you would lose (318.00) from holding Tsingtao Brewery Co or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Beijing Kingsoft Office
Performance |
| Timeline |
| Tsingtao Brewery |
| Beijing Kingsoft Office |
Tsingtao Brewery and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Beijing Kingsoft
The main advantage of trading using opposite Tsingtao Brewery and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Beijing Kingsoft 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 Beijing Kingsoft will offset losses from the drop in Beijing Kingsoft's long position.| Tsingtao Brewery vs. Beijing Jiaman Dress | Tsingtao Brewery vs. Shaanxi Meineng Clean | Tsingtao Brewery vs. Kingclean Electric Co | Tsingtao Brewery vs. Jinling Hotel Corp |
| Beijing Kingsoft vs. Jonjee Hi tech Industrial | Beijing Kingsoft vs. Guangzhou Haozhi Industrial | Beijing Kingsoft vs. Tsingtao Brewery Co | Beijing Kingsoft vs. Beijing Yanjing Brewery |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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