Correlation Between RTL Group and Tsingtao Brewery
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By analyzing existing cross correlation between RTL Group SA and Tsingtao Brewery, you can compare the effects of market volatilities on RTL Group 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 RTL Group with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTL Group and Tsingtao Brewery.
Diversification Opportunities for RTL Group and Tsingtao Brewery
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between RTL and Tsingtao is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding RTL Group SA and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and RTL Group 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 RTL Group SA 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 RTL Group i.e., RTL Group and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between RTL Group and Tsingtao Brewery
Assuming the 90 days trading horizon RTL Group SA is expected to under-perform the Tsingtao Brewery. But the stock apears to be less risky and, when comparing its historical volatility, RTL Group SA is 1.84 times less risky than Tsingtao Brewery. The stock trades about -0.06 of its potential returns per unit of risk. The Tsingtao Brewery is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 466.00 in Tsingtao Brewery on September 15, 2024 and sell it today you would earn a total of 198.00 from holding Tsingtao Brewery or generate 42.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
RTL Group SA vs. Tsingtao Brewery
Performance |
Timeline |
RTL Group SA |
Tsingtao Brewery |
RTL Group and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with RTL Group and Tsingtao Brewery
The main advantage of trading using opposite RTL Group and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTL Group 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.RTL Group vs. Gold Road Resources | RTL Group vs. KAUFMAN ET BROAD | RTL Group vs. Ross Stores | RTL Group vs. JIAHUA STORES |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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