Correlation Between Tsingtao Brewery and OAKTRSPECLENDNEW

Can any of the company-specific risk be diversified away by investing in both Tsingtao Brewery and OAKTRSPECLENDNEW 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 Tsingtao Brewery and OAKTRSPECLENDNEW into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tsingtao Brewery and OAKTRSPECLENDNEW, you can compare the effects of market volatilities on Tsingtao Brewery and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsingtao Brewery and OAKTRSPECLENDNEW.

Diversification Opportunities for Tsingtao Brewery and OAKTRSPECLENDNEW

0.0

Correlation Coefficient

Tsingtao Brewery  OAKTRSPECLENDNEW

Pay attention - limited upside

The 3 months correlation between Tsingtao and OAKTRSPECLENDNEW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW 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 are associated (or correlated) with OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and OAKTRSPECLENDNEW go up and down completely randomly.

Pair Corralation between Tsingtao Brewery and OAKTRSPECLENDNEW

Assuming the 90 days trading horizon Tsingtao Brewery is expected to under-perform the OAKTRSPECLENDNEW. In addition to that, Tsingtao Brewery is 1.5 times more volatile than OAKTRSPECLENDNEW. It trades about -0.01 of its total potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about 0.0 per unit of volatility. If you would invest  1,463  in OAKTRSPECLENDNEW on October 15, 2024 and sell it today you would lose (3.00) from holding OAKTRSPECLENDNEW or give up 0.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tsingtao Brewery  vs.  OAKTRSPECLENDNEW

Tsingtao Brewery

Risk-Adjusted Performance

0 of 100

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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

OAKTRSPECLENDNEW

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OAKTRSPECLENDNEW has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, OAKTRSPECLENDNEW is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Tsingtao Brewery and OAKTRSPECLENDNEW

The main advantage of trading using opposite Tsingtao Brewery and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsingtao Brewery position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW's long position.

The idea behind Tsingtao Brewery and OAKTRSPECLENDNEW 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.