Correlation Between Huaibei Mining and Tsingtao Brewery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huaibei Mining Holdings and Tsingtao Brewery Co, you can compare the effects of market volatilities on Huaibei Mining 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 Huaibei Mining with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Tsingtao Brewery.
Diversification Opportunities for Huaibei Mining and Tsingtao Brewery
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huaibei and Tsingtao is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Huaibei Mining 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 Huaibei Mining Holdings 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 Huaibei Mining i.e., Huaibei Mining and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Huaibei Mining and Tsingtao Brewery
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to under-perform the Tsingtao Brewery. But the stock apears to be less risky and, when comparing its historical volatility, Huaibei Mining Holdings is 1.03 times less risky than Tsingtao Brewery. The stock trades about -0.07 of its potential returns per unit of risk. The Tsingtao Brewery Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 7,872 in Tsingtao Brewery Co on September 1, 2024 and sell it today you would lose (574.00) from holding Tsingtao Brewery Co or give up 7.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Tsingtao Brewery |
Huaibei Mining and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Tsingtao Brewery
The main advantage of trading using opposite Huaibei Mining and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining 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.| Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei Mining vs. Shandong Gold Mining | Huaibei Mining vs. Rongsheng Petrochemical Co |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |