Correlation Between Taiji Computer and Kweichow Moutai
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By analyzing existing cross correlation between Taiji Computer Corp and Kweichow Moutai Co, you can compare the effects of market volatilities on Taiji Computer 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 Taiji Computer with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiji Computer and Kweichow Moutai.
Diversification Opportunities for Taiji Computer and Kweichow Moutai
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Taiji and Kweichow is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Taiji Computer Corp and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Taiji Computer 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 Taiji Computer Corp 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 Taiji Computer i.e., Taiji Computer and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Taiji Computer and Kweichow Moutai
Assuming the 90 days trading horizon Taiji Computer Corp is not expected to generate positive returns. Moreover, Taiji Computer is 2.55 times more volatile than Kweichow Moutai Co. It trades away all of its potential returns to assume current level of volatility. Kweichow Moutai Co is currently generating about -0.12 per unit of risk. If you would invest 2,200 in Taiji Computer Corp on October 14, 2024 and sell it today you would lose (84.00) from holding Taiji Computer Corp or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taiji Computer Corp vs. Kweichow Moutai Co
Performance |
| Timeline |
| Taiji Computer Corp |
| Kweichow Moutai |
Taiji Computer and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taiji Computer and Kweichow Moutai
The main advantage of trading using opposite Taiji Computer and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiji Computer 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.| Taiji Computer vs. Maoming Petro Chemical Shihua | Taiji Computer vs. Jinling Hotel Corp | Taiji Computer vs. Wuxi Chemical Equipment | Taiji Computer vs. Xiangtan Electrochemical Scientific |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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