Correlation Between ZJBC Information and Kweichow Moutai
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By analyzing existing cross correlation between ZJBC Information Technology and Kweichow Moutai Co, you can compare the effects of market volatilities on ZJBC Information and Kweichow Moutai 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 ZJBC Information with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJBC Information and Kweichow Moutai.
Diversification Opportunities for ZJBC Information and Kweichow Moutai
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZJBC and Kweichow is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding ZJBC Information Technology and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and ZJBC Information 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 ZJBC Information Technology are associated (or correlated) with Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of ZJBC Information i.e., ZJBC Information and Kweichow Moutai go up and down completely randomly.
Pair Corralation between ZJBC Information and Kweichow Moutai
Assuming the 90 days trading horizon ZJBC Information Technology is expected to generate 3.0 times more return on investment than Kweichow Moutai. However, ZJBC Information is 3.0 times more volatile than Kweichow Moutai Co. It trades about 0.06 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.12 per unit of risk. If you would invest 224.00 in ZJBC Information Technology on October 22, 2024 and sell it today you would earn a total of 16.00 from holding ZJBC Information Technology or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
ZJBC Information Technology vs. Kweichow Moutai Co
Performance |
| Timeline |
| ZJBC Information Tec |
| Kweichow Moutai |
ZJBC Information and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZJBC Information and Kweichow Moutai
The main advantage of trading using opposite ZJBC Information and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJBC Information position performs unexpectedly, Kweichow Moutai 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 Kweichow Moutai will offset losses from the drop in Kweichow Moutai's long position.| ZJBC Information vs. Sharetronic Data Technology | ZJBC Information vs. Xinjiang Baodi Mining | ZJBC Information vs. Kuangda Technology Group | ZJBC Information vs. Hengli Industrial Development |
| Kweichow Moutai vs. ZJBC Information Technology | Kweichow Moutai vs. Jinxiandai Information Industry | Kweichow Moutai vs. Guangzhou Ruoyuchen Information | Kweichow Moutai vs. Kuangda Technology Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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