Correlation Between Ping An and Tsingtao Brewery
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By analyzing existing cross correlation between Ping An Insurance and Tsingtao Brewery Co, you can compare the effects of market volatilities on Ping An 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 Ping An with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Tsingtao Brewery.
Diversification Opportunities for Ping An and Tsingtao Brewery
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ping and Tsingtao is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Ping An 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 Ping An Insurance 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 Ping An i.e., Ping An and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Ping An and Tsingtao Brewery
Assuming the 90 days trading horizon Ping An Insurance is expected to under-perform the Tsingtao Brewery. But the stock apears to be less risky and, when comparing its historical volatility, Ping An Insurance is 1.13 times less risky than Tsingtao Brewery. The stock trades about -0.16 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 7,056 in Tsingtao Brewery Co on August 29, 2024 and sell it today you would lose (15.00) from holding Tsingtao Brewery Co or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Ping An Insurance |
| Tsingtao Brewery |
Ping An and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Tsingtao Brewery
The main advantage of trading using opposite Ping An and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An 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.| Ping An vs. Kweichow Moutai Co | Ping An vs. Contemporary Amperex Technology | Ping An vs. G bits Network Technology | Ping An vs. BYD Co Ltd |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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