Correlation Between Tsingtao Brewery and Jiangsu Financial
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By analyzing existing cross correlation between Tsingtao Brewery Co and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Tsingtao Brewery and Jiangsu Financial 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 Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and Jiangsu Financial.
Diversification Opportunities for Tsingtao Brewery and Jiangsu Financial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tsingtao and Jiangsu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery Co and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing 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 Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Tsingtao Brewery and Jiangsu Financial
Assuming the 90 days trading horizon Tsingtao Brewery Co is expected to generate 1.3 times more return on investment than Jiangsu Financial. However, Tsingtao Brewery is 1.3 times more volatile than Jiangsu Financial Leasing. It trades about 0.21 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.12 per unit of risk. If you would invest 5,446 in Tsingtao Brewery Co on September 15, 2024 and sell it today you would earn a total of 2,454 from holding Tsingtao Brewery Co or generate 45.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Tsingtao Brewery Co vs. Jiangsu Financial Leasing
Performance |
Timeline |
Tsingtao Brewery |
Jiangsu Financial Leasing |
Tsingtao Brewery and Jiangsu Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tsingtao Brewery and Jiangsu Financial
The main advantage of trading using opposite Tsingtao Brewery and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.Tsingtao Brewery vs. Ye Chiu Metal | Tsingtao Brewery vs. Anhui Jianghuai Automobile | Tsingtao Brewery vs. CIMC Vehicles Co | Tsingtao Brewery vs. Western Metal Materials |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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