Correlation Between Zhengzhou Qianweiyangchu and Tsingtao Brewery
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By analyzing existing cross correlation between Zhengzhou Qianweiyangchu Food and Tsingtao Brewery Co, you can compare the effects of market volatilities on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Qianweiyangchu and Tsingtao Brewery.
Diversification Opportunities for Zhengzhou Qianweiyangchu and Tsingtao Brewery
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhengzhou and Tsingtao is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Qianweiyangchu Food and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu Food 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 Zhengzhou Qianweiyangchu i.e., Zhengzhou Qianweiyangchu and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Zhengzhou Qianweiyangchu and Tsingtao Brewery
Assuming the 90 days trading horizon Zhengzhou Qianweiyangchu Food is expected to under-perform the Tsingtao Brewery. In addition to that, Zhengzhou Qianweiyangchu is 2.01 times more volatile than Tsingtao Brewery Co. It trades about -0.03 of its total potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.34 per unit of volatility. If you would invest 6,995 in Tsingtao Brewery Co on September 26, 2024 and sell it today you would earn a total of 929.00 from holding Tsingtao Brewery Co or generate 13.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhengzhou Qianweiyangchu Food vs. Tsingtao Brewery Co
Performance |
Timeline |
Zhengzhou Qianweiyangchu |
Tsingtao Brewery |
Zhengzhou Qianweiyangchu and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhengzhou Qianweiyangchu and Tsingtao Brewery
The main advantage of trading using opposite Zhengzhou Qianweiyangchu and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Qianweiyangchu 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.Zhengzhou Qianweiyangchu vs. Ming Yang Smart | Zhengzhou Qianweiyangchu vs. 159681 | Zhengzhou Qianweiyangchu vs. 159005 | Zhengzhou Qianweiyangchu vs. Loctek Ergonomic Technology |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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