Correlation Between Tsingtao Brewery and Jointo Energy
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By analyzing existing cross correlation between Tsingtao Brewery Co and Jointo Energy Investment, you can compare the effects of market volatilities on Tsingtao Brewery and Jointo Energy 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 Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Jointo Energy.
Diversification Opportunities for Tsingtao Brewery and Jointo Energy
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tsingtao and Jointo is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Jointo Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jointo Energy Investment 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 Jointo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jointo Energy Investment has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Jointo Energy go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Jointo Energy
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 1.18 times more return on investment than Jointo Energy. However, Tsingtao Brewery is 1.18 times more volatile than Jointo Energy Investment. It trades about 0.04 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about -0.02 per unit of risk. If you would invest 7,258 in Tsingtao Brewery Co on September 25, 2024 and sell it today you would earn a total of 558.00 from holding Tsingtao Brewery Co or generate 7.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Tsingtao Brewery Co vs. Jointo Energy Investment
Performance |
Timeline |
Tsingtao Brewery |
Jointo Energy Investment |
Tsingtao Brewery and Jointo Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tsingtao Brewery and Jointo Energy
The main advantage of trading using opposite Tsingtao Brewery and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Jointo Energy 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 Jointo Energy will offset losses from the drop in Jointo Energy's long position.Tsingtao Brewery vs. Youyou Foods Co | Tsingtao Brewery vs. Zhengzhou Qianweiyangchu Food | Tsingtao Brewery vs. ChengDu Hi Tech Development | Tsingtao Brewery vs. Kuang Chi Technologies |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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