Correlation Between COMINTL BANK and Tsingtao Brewery
Can any of the company-specific risk be diversified away by investing in both COMINTL BANK 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 COMINTL BANK and Tsingtao Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMINTL BANK ADR1 and Tsingtao Brewery, you can compare the effects of market volatilities on COMINTL BANK 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 COMINTL BANK with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and Tsingtao Brewery.
Diversification Opportunities for COMINTL BANK and Tsingtao Brewery
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COMINTL and Tsingtao is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and COMINTL BANK 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 COMINTL BANK ADR1 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 COMINTL BANK i.e., COMINTL BANK and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between COMINTL BANK and Tsingtao Brewery
Assuming the 90 days trading horizon COMINTL BANK ADR1 is expected to generate 1.94 times more return on investment than Tsingtao Brewery. However, COMINTL BANK is 1.94 times more volatile than Tsingtao Brewery. It trades about -0.06 of its potential returns per unit of risk. Tsingtao Brewery is currently generating about -0.26 per unit of risk. If you would invest 127.00 in COMINTL BANK ADR1 on October 14, 2024 and sell it today you would lose (3.00) from holding COMINTL BANK ADR1 or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMINTL BANK ADR1 vs. Tsingtao Brewery
Performance |
| Timeline |
| COMINTL BANK ADR1 |
| Tsingtao Brewery |
COMINTL BANK and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMINTL BANK and Tsingtao Brewery
The main advantage of trading using opposite COMINTL BANK and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMINTL BANK 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.| COMINTL BANK vs. Santander Bank Polska | COMINTL BANK vs. Superior Plus Corp | COMINTL BANK vs. NMI Holdings | COMINTL BANK vs. SIVERS SEMICONDUCTORS AB |
| Tsingtao Brewery vs. Transport International Holdings | Tsingtao Brewery vs. EVS Broadcast Equipment | Tsingtao Brewery vs. Broadridge Financial Solutions | Tsingtao Brewery vs. Fortescue Metals Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |