Correlation Between Sinocat Environmental and Tsingtao Brewery
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By analyzing existing cross correlation between Sinocat Environmental Technology and Tsingtao Brewery Co, you can compare the effects of market volatilities on Sinocat Environmental 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 Sinocat Environmental with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Tsingtao Brewery.
Diversification Opportunities for Sinocat Environmental and Tsingtao Brewery
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinocat and Tsingtao is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Sinocat Environmental 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 Sinocat Environmental Technology 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 Sinocat Environmental i.e., Sinocat Environmental and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Tsingtao Brewery
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to generate 2.02 times more return on investment than Tsingtao Brewery. However, Sinocat Environmental is 2.02 times more volatile than Tsingtao Brewery Co. It trades about 0.47 of its potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.25 per unit of risk. If you would invest 1,679 in Sinocat Environmental Technology on September 17, 2024 and sell it today you would earn a total of 698.00 from holding Sinocat Environmental Technology or generate 41.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Sinocat Environmental |
| Tsingtao Brewery |
Sinocat Environmental and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Tsingtao Brewery
The main advantage of trading using opposite Sinocat Environmental and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental 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.| Sinocat Environmental vs. BeiGene | Sinocat Environmental vs. Kweichow Moutai Co | Sinocat Environmental vs. Beijing Roborock Technology | Sinocat Environmental vs. G bits Network Technology |
| Tsingtao Brewery vs. Industrial and Commercial | Tsingtao Brewery vs. Kweichow Moutai Co | Tsingtao Brewery vs. Agricultural Bank of | Tsingtao Brewery vs. China Mobile Limited |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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