Correlation Between Tsingtao Brewery and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Tsingtao Brewery and Carlsberg 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 Tsingtao Brewery and Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tsingtao Brewery Co and Carlsberg AS, you can compare the effects of market volatilities on Tsingtao Brewery and Carlsberg 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 Tsingtao Brewery with a short position of Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Carlsberg.
Diversification Opportunities for Tsingtao Brewery and Carlsberg
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tsingtao and Carlsberg is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS and Tsingtao Brewery 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 Tsingtao Brewery Co are associated (or correlated) with Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Carlsberg go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Carlsberg
Assuming the 90 days horizon Tsingtao Brewery Co is expected to generate 1.09 times more return on investment than Carlsberg. However, Tsingtao Brewery is 1.09 times more volatile than Carlsberg AS. It trades about 0.34 of its potential returns per unit of risk. Carlsberg AS is currently generating about 0.36 per unit of risk. If you would invest 3,188 in Tsingtao Brewery Co on December 16, 2024 and sell it today you would earn a total of 345.00 from holding Tsingtao Brewery Co or generate 10.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery Co vs. Carlsberg AS
Performance |
| Timeline |
| Tsingtao Brewery |
| Carlsberg AS |
Tsingtao Brewery and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Carlsberg
The main advantage of trading using opposite Tsingtao Brewery and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| Tsingtao Brewery vs. Jiangsu Expressway Co | ||
| Tsingtao Brewery vs. Tsingtao Brewery | ||
| Tsingtao Brewery vs. TravelSky Technology Ltd | ||
| Tsingtao Brewery vs. Air China Ltd |
| Carlsberg vs. Suntory Beverage Food | ||
| Carlsberg vs. Asahi Group Holdings | ||
| Carlsberg vs. Compania Cervecerias Unidas | ||
| Carlsberg vs. Heineken NV |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |
Recommendations on macroaxis.com are based on what is currently trending. Macroaxis LLC is not a registered investment advisor or broker/dealer.
The information on the site should be used for informational purposes only and is not investment advice.
more