Correlation Between China Resources and Sto SE
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By analyzing existing cross correlation between China Resources Beer and Sto SE Co, you can compare the effects of market volatilities on China Resources and Sto SE 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 China Resources with a short position of Sto SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and Sto SE.
Diversification Opportunities for China Resources and Sto SE
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Sto is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Beer and Sto SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sto SE and China Resources 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 China Resources Beer are associated (or correlated) with Sto SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sto SE has no effect on the direction of China Resources i.e., China Resources and Sto SE go up and down completely randomly.
Pair Corralation between China Resources and Sto SE
Assuming the 90 days horizon China Resources is expected to generate 3.15 times less return on investment than Sto SE. But when comparing it to its historical volatility, China Resources Beer is 1.23 times less risky than Sto SE. It trades about 0.07 of its potential returns per unit of risk. Sto SE Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 11,160 in Sto SE Co on December 3, 2024 and sell it today you would earn a total of 1,380 from holding Sto SE Co or generate 12.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Resources Beer vs. Sto SE Co
Performance |
| Timeline |
| China Resources Beer |
| Sto SE |
China Resources and Sto SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Resources and Sto SE
The main advantage of trading using opposite China Resources and Sto SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources position performs unexpectedly, Sto SE 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 Sto SE will offset losses from the drop in Sto SE's long position.| China Resources vs. ATRESMEDIA | China Resources vs. PLAYWAY SA ZY 10 | China Resources vs. Live Nation Entertainment | China Resources vs. Fuji Media Holdings |
| Sto SE vs. GAMING FAC SA | Sto SE vs. CONTAGIOUS GAMING INC | Sto SE vs. Tokyu Construction Co | Sto SE vs. GigaMedia |
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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