Correlation Between Tsingtao Brewery and SPORTING
Can any of the company-specific risk be diversified away by investing in both Tsingtao Brewery and SPORTING 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 SPORTING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tsingtao Brewery and SPORTING, you can compare the effects of market volatilities on Tsingtao Brewery and SPORTING 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 SPORTING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and SPORTING.
Diversification Opportunities for Tsingtao Brewery and SPORTING
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tsingtao and SPORTING is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery and SPORTING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPORTING 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 are associated (or correlated) with SPORTING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPORTING has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and SPORTING go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and SPORTING
Assuming the 90 days trading horizon Tsingtao Brewery is expected to generate 0.17 times more return on investment than SPORTING. However, Tsingtao Brewery is 5.95 times less risky than SPORTING. It trades about -0.08 of its potential returns per unit of risk. SPORTING is currently generating about -0.1 per unit of risk. If you would invest 653.00 in Tsingtao Brewery on October 19, 2024 and sell it today you would lose (11.00) from holding Tsingtao Brewery or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery vs. SPORTING
Performance |
| Timeline |
| Tsingtao Brewery |
| SPORTING |
Tsingtao Brewery and SPORTING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and SPORTING
The main advantage of trading using opposite Tsingtao Brewery and SPORTING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, SPORTING 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 SPORTING will offset losses from the drop in SPORTING's long position.| Tsingtao Brewery vs. Thai Beverage Public | Tsingtao Brewery vs. Molson Coors Beverage | Tsingtao Brewery vs. National Beverage Corp | Tsingtao Brewery vs. THAI BEVERAGE |
| SPORTING vs. Tsingtao Brewery | SPORTING vs. Monster Beverage Corp | SPORTING vs. VIENNA INSURANCE GR | SPORTING vs. MOLSON RS BEVERAGE |
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 Stocks Directory module to find actively traded stocks across global markets.
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