Correlation Between China Mobile and Tsingtao Brewery
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By analyzing existing cross correlation between China Mobile Limited and Tsingtao Brewery Co, you can compare the effects of market volatilities on China Mobile and Tsingtao Brewery 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 China Mobile with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Tsingtao Brewery.
Diversification Opportunities for China Mobile and Tsingtao Brewery
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Tsingtao is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and China Mobile 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 China Mobile Limited are associated (or correlated) with Tsingtao Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsingtao Brewery has no effect on the direction of China Mobile i.e., China Mobile and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between China Mobile and Tsingtao Brewery
Assuming the 90 days trading horizon China Mobile Limited is expected to generate 0.6 times more return on investment than Tsingtao Brewery. However, China Mobile Limited is 1.66 times less risky than Tsingtao Brewery. It trades about 0.05 of its potential returns per unit of risk. Tsingtao Brewery Co is currently generating about -0.01 per unit of risk. If you would invest 9,115 in China Mobile Limited on September 1, 2024 and sell it today you would earn a total of 1,523 from holding China Mobile Limited or generate 16.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Tsingtao Brewery Co
Performance |
| Timeline |
| China Mobile Limited |
| Tsingtao Brewery |
China Mobile and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Tsingtao Brewery
The main advantage of trading using opposite China Mobile and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile position performs unexpectedly, Tsingtao Brewery 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 Tsingtao Brewery will offset losses from the drop in Tsingtao Brewery's long position.| China Mobile vs. Kweichow Moutai Co | China Mobile vs. NAURA Technology Group | China Mobile vs. APT Medical | China Mobile vs. BYD Co Ltd |
| Tsingtao Brewery vs. BeiGene | Tsingtao Brewery vs. Kweichow Moutai Co | Tsingtao Brewery vs. Beijing Roborock Technology | Tsingtao Brewery vs. G bits Network Technology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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