Correlation Between EAT WELL and Tsingtao Brewery
Can any of the company-specific risk be diversified away by investing in both EAT WELL and Tsingtao Brewery at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining EAT WELL and Tsingtao Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAT WELL INVESTMENT and Tsingtao Brewery, you can compare the effects of market volatilities on EAT WELL 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 EAT WELL with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAT WELL and Tsingtao Brewery.
Diversification Opportunities for EAT WELL and Tsingtao Brewery
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EAT and Tsingtao is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EAT WELL INVESTMENT and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and EAT WELL 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 EAT WELL INVESTMENT 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 EAT WELL i.e., EAT WELL and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between EAT WELL and Tsingtao Brewery
If you would invest 600.00 in Tsingtao Brewery on December 7, 2024 and sell it today you would earn a total of 25.00 from holding Tsingtao Brewery or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
EAT WELL INVESTMENT vs. Tsingtao Brewery
Performance |
| Timeline |
| EAT WELL INVESTMENT |
| Tsingtao Brewery |
EAT WELL and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAT WELL and Tsingtao Brewery
The main advantage of trading using opposite EAT WELL and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAT WELL 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.| EAT WELL vs. Fevertree Drinks PLC | EAT WELL vs. Addtech AB | EAT WELL vs. FARO Technologies | EAT WELL vs. Playtech plc |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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