Correlation Between Tengda Construction and Tsingtao Brewery
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By analyzing existing cross correlation between Tengda Construction Group and Tsingtao Brewery Co, you can compare the effects of market volatilities on Tengda Construction 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 Tengda Construction with a short position of Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tengda Construction and Tsingtao Brewery.
Diversification Opportunities for Tengda Construction and Tsingtao Brewery
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tengda and Tsingtao is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tengda Construction Group and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery and Tengda Construction 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 Tengda Construction Group 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 Tengda Construction i.e., Tengda Construction and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Tengda Construction and Tsingtao Brewery
Assuming the 90 days trading horizon Tengda Construction Group is expected to generate 1.2 times more return on investment than Tsingtao Brewery. However, Tengda Construction is 1.2 times more volatile than Tsingtao Brewery Co. It trades about 0.23 of its potential returns per unit of risk. Tsingtao Brewery Co is currently generating about 0.2 per unit of risk. If you would invest 240.00 in Tengda Construction Group on September 15, 2024 and sell it today you would earn a total of 27.00 from holding Tengda Construction Group or generate 11.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Tengda Construction Group vs. Tsingtao Brewery Co
Performance |
Timeline |
Tengda Construction |
Tsingtao Brewery |
Tengda Construction and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tengda Construction and Tsingtao Brewery
The main advantage of trading using opposite Tengda Construction and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tengda Construction 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.Tengda Construction vs. Shenzhen Topway Video | Tengda Construction vs. Henan Shuanghui Investment | Tengda Construction vs. Tongyu Communication | Tengda Construction vs. Cultural Investment Holdings |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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