Correlation Between Tsingtao Brewery and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both Tsingtao Brewery and Mobilezone Holding 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 Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tsingtao Brewery and Mobilezone Holding AG, you can compare the effects of market volatilities on Tsingtao Brewery and Mobilezone Holding 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 Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Mobilezone Holding.
Diversification Opportunities for Tsingtao Brewery and Mobilezone Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tsingtao and Mobilezone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery and Mobilezone Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobilezone Holding 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 Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobilezone Holding has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Mobilezone Holding go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Mobilezone Holding
Assuming the 90 days trading horizon Tsingtao Brewery is expected to generate 4.92 times more return on investment than Mobilezone Holding. However, Tsingtao Brewery is 4.92 times more volatile than Mobilezone Holding AG. It trades about 0.03 of its potential returns per unit of risk. Mobilezone Holding AG is currently generating about 0.06 per unit of risk. If you would invest 489.00 in Tsingtao Brewery on October 19, 2024 and sell it today you would earn a total of 160.00 from holding Tsingtao Brewery or generate 32.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsingtao Brewery vs. Mobilezone Holding AG
Performance |
| Timeline |
| Tsingtao Brewery |
| Mobilezone Holding |
Tsingtao Brewery and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsingtao Brewery and Mobilezone Holding
The main advantage of trading using opposite Tsingtao Brewery and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Mobilezone Holding 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 Mobilezone Holding will offset losses from the drop in Mobilezone Holding'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 |
| Mobilezone Holding vs. ELMOS SEMICONDUCTOR | Mobilezone Holding vs. Advanced Medical Solutions | Mobilezone Holding vs. CompuGroup Medical SE | Mobilezone Holding vs. SPAGO NANOMEDICAL AB |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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