Correlation Between AUSTEVOLL SEAFOOD and Tsingtao Brewery | Z85.STU vs. TSI.BE

Correlation Between AUSTEVOLL SEAFOOD and Tsingtao Brewery

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD and Tsingtao Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUSTEVOLL SEAFOOD and Tsingtao Brewery, you can compare the effects of market volatilities on AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUSTEVOLL SEAFOOD and Tsingtao Brewery.

Diversification Opportunities for AUSTEVOLL SEAFOOD and Tsingtao Brewery

AUSTEVOLLTsingtaoDiversified AwayAUSTEVOLLTsingtaoDiversified Away100%
-0.1
  Correlation Coefficient

Good diversification

The 3 months correlation between AUSTEVOLL and Tsingtao is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding AUSTEVOLL SEAFOOD and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD i.e., AUSTEVOLL SEAFOOD and Tsingtao Brewery go up and down completely randomly.

Pair Corralation between AUSTEVOLL SEAFOOD and Tsingtao Brewery

Assuming the 90 days trading horizon AUSTEVOLL SEAFOOD is expected to generate 1.64 times more return on investment than Tsingtao Brewery. However, AUSTEVOLL SEAFOOD is 1.64 times more volatile than Tsingtao Brewery. It trades about 0.04 of its potential returns per unit of risk. Tsingtao Brewery is currently generating about 0.03 per unit of risk. If you would invest  380.00  in AUSTEVOLL SEAFOOD on September 30, 2024 and sell it today you would earn a total of  439.00  from holding AUSTEVOLL SEAFOOD or generate 115.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

AUSTEVOLL SEAFOOD  vs.  Tsingtao Brewery

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 010203040
JavaScript chart by amCharts 3.21.15Z85 TSI
       Timeline  
AUSTEVOLL SEAFOOD 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AUSTEVOLL SEAFOOD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AUSTEVOLL SEAFOOD is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecDec7.888.28.48.68.8
Tsingtao Brewery 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Tsingtao Brewery has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Tsingtao Brewery is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15NovDecDec66.577.5

AUSTEVOLL SEAFOOD and Tsingtao Brewery Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.71-3.53-2.34-1.160.011.152.333.524.75.89 0.050.100.15
JavaScript chart by amCharts 3.21.15Z85 TSI
       Returns  

Pair Trading with AUSTEVOLL SEAFOOD and Tsingtao Brewery

The main advantage of trading using opposite AUSTEVOLL SEAFOOD and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUSTEVOLL SEAFOOD 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.
The idea behind AUSTEVOLL SEAFOOD and Tsingtao Brewery pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios


 

Discover investing ideas

Utilize additional investing modules