Correlation Between Assicurazioni Generali and Tsingtao Brewery
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali 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 Assicurazioni Generali and Tsingtao Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assicurazioni Generali SpA and Tsingtao Brewery, you can compare the effects of market volatilities on Assicurazioni Generali 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 Assicurazioni Generali with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and Tsingtao Brewery.
Diversification Opportunities for Assicurazioni Generali and Tsingtao Brewery
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Assicurazioni and Tsingtao is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Assicurazioni Generali 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 Assicurazioni Generali SpA 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 Assicurazioni Generali i.e., Assicurazioni Generali and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and Tsingtao Brewery
Assuming the 90 days horizon Assicurazioni Generali SpA is expected to generate 0.62 times more return on investment than Tsingtao Brewery. However, Assicurazioni Generali SpA is 1.6 times less risky than Tsingtao Brewery. It trades about 0.11 of its potential returns per unit of risk. Tsingtao Brewery is currently generating about -0.14 per unit of risk. If you would invest 2,590 in Assicurazioni Generali SpA on August 29, 2024 and sell it today you would earn a total of 98.00 from holding Assicurazioni Generali SpA or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assicurazioni Generali SpA vs. Tsingtao Brewery
Performance |
| Timeline |
| Assicurazioni Generali |
| Tsingtao Brewery |
Assicurazioni Generali and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assicurazioni Generali and Tsingtao Brewery
The main advantage of trading using opposite Assicurazioni Generali and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali 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.| Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Zurich Insurance Group | Assicurazioni Generali vs. Superior Plus Corp |
| Tsingtao Brewery vs. Apple Inc | Tsingtao Brewery vs. Apple Inc | Tsingtao Brewery vs. Superior Plus Corp | Tsingtao Brewery vs. SIVERS SEMICONDUCTORS AB |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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