Correlation Between Lion One and Tsingtao Brewery
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and Tsingtao Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Tsingtao Brewery, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Tsingtao Brewery.
Diversification Opportunities for Lion One and Tsingtao Brewery
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lion and Tsingtao is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Lion One and Tsingtao Brewery
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Tsingtao Brewery. In addition to that, Lion One is 1.52 times more volatile than Tsingtao Brewery. It trades about -0.12 of its total potential returns per unit of risk. Tsingtao Brewery is currently generating about 0.01 per unit of volatility. If you would invest 603.00 in Tsingtao Brewery on September 13, 2024 and sell it today you would lose (2.00) from holding Tsingtao Brewery or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Tsingtao Brewery
Performance |
| Timeline |
| Lion One Metals |
| Tsingtao Brewery |
Lion One and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Tsingtao Brewery
The main advantage of trading using opposite Lion One and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. Franco Nevada | Lion One vs. Superior Plus Corp | Lion One vs. SIVERS SEMICONDUCTORS AB | Lion One vs. Norsk Hydro ASA |
| Tsingtao Brewery vs. PUBLIC STORAGE PRFO | Tsingtao Brewery vs. Lion One Metals | Tsingtao Brewery vs. PACIFIC ONLINE | Tsingtao Brewery vs. MICRONIC MYDATA |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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