Correlation Between Tsingtao Brewery and FRACTAL GAMING

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

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

Diversification Opportunities for Tsingtao Brewery and FRACTAL GAMING

-0.79

Correlation Coefficient

Tsingtao Brewery  FRACTAL GAMING

Pay attention - limited upside

The 3 months correlation between Tsingtao and FRACTAL is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tsingtao Brewery and FRACTAL GAMING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRACTAL GAMING GROUP 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 FRACTAL GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRACTAL GAMING GROUP has no effect on the direction of Tsingtao Brewery i.e., Tsingtao Brewery and FRACTAL GAMING go up and down completely randomly.

Pair Corralation between Tsingtao Brewery and FRACTAL GAMING

Assuming the 90 days trading horizon Tsingtao Brewery is expected to under-perform the FRACTAL GAMING. In addition to that, Tsingtao Brewery is 1.02 times more volatile than FRACTAL GAMING GROUP. It trades about -0.09 of its total potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about 0.32 per unit of volatility. If you would invest  294.00  in FRACTAL GAMING GROUP on April 22, 2025 and sell it today you would earn a total of  110.00  from holding FRACTAL GAMING GROUP or generate 37.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Tsingtao Brewery  vs.  FRACTAL GAMING GROUP

Tsingtao Brewery

Risk-Adjusted Performance

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 latest uncertain performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

FRACTAL GAMING GROUP

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FRACTAL GAMING GROUP are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FRACTAL GAMING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tsingtao Brewery and FRACTAL GAMING

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

The idea behind Tsingtao Brewery and FRACTAL GAMING GROUP 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.