Correlation Between De Rucci and Kweichow Moutai
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By analyzing existing cross correlation between De Rucci Healthy and Kweichow Moutai Co, you can compare the effects of market volatilities on De Rucci 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 De Rucci with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Rucci and Kweichow Moutai.
Diversification Opportunities for De Rucci and Kweichow Moutai
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 001323 and Kweichow is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding De Rucci Healthy and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and De Rucci 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 De Rucci Healthy 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 De Rucci i.e., De Rucci and Kweichow Moutai go up and down completely randomly.
Pair Corralation between De Rucci and Kweichow Moutai
Assuming the 90 days trading horizon De Rucci Healthy is expected to generate 1.43 times more return on investment than Kweichow Moutai. However, De Rucci is 1.43 times more volatile than Kweichow Moutai Co. It trades about 0.02 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 3,790 in De Rucci Healthy on August 28, 2024 and sell it today you would earn a total of 25.00 from holding De Rucci Healthy or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Rucci Healthy vs. Kweichow Moutai Co
Performance |
| Timeline |
| De Rucci Healthy |
| Kweichow Moutai |
De Rucci and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Rucci and Kweichow Moutai
The main advantage of trading using opposite De Rucci and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Rucci 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.| De Rucci vs. China Petroleum Chemical | De Rucci vs. PetroChina Co Ltd | De Rucci vs. China State Construction | De Rucci vs. China Railway Group |
| Kweichow Moutai vs. Huafa Industrial Co | Kweichow Moutai vs. Xinjiang Baodi Mining | Kweichow Moutai vs. Guangzhou Haozhi Industrial | Kweichow Moutai vs. Hainan Mining Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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