Correlation Between Tongding Interconnection and Kweichow Moutai
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By analyzing existing cross correlation between Tongding Interconnection Information and Kweichow Moutai Co, you can compare the effects of market volatilities on Tongding Interconnection 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 Tongding Interconnection with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongding Interconnection and Kweichow Moutai.
Diversification Opportunities for Tongding Interconnection and Kweichow Moutai
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongding and Kweichow is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tongding Interconnection Infor and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Tongding Interconnection 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 Tongding Interconnection Information 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 Tongding Interconnection i.e., Tongding Interconnection and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Tongding Interconnection and Kweichow Moutai
Assuming the 90 days trading horizon Tongding Interconnection Information is expected to generate 1.45 times more return on investment than Kweichow Moutai. However, Tongding Interconnection is 1.45 times more volatile than Kweichow Moutai Co. It trades about 0.2 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.01 per unit of risk. If you would invest 418.00 in Tongding Interconnection Information on September 2, 2024 and sell it today you would earn a total of 39.00 from holding Tongding Interconnection Information or generate 9.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongding Interconnection Infor vs. Kweichow Moutai Co
Performance |
| Timeline |
| Tongding Interconnection |
| Kweichow Moutai |
Tongding Interconnection and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongding Interconnection and Kweichow Moutai
The main advantage of trading using opposite Tongding Interconnection and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongding Interconnection 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.| Tongding Interconnection vs. Industrial and Commercial | Tongding Interconnection vs. Kweichow Moutai Co | Tongding Interconnection vs. Agricultural Bank of | Tongding Interconnection vs. China Mobile Limited |
| Kweichow Moutai vs. Caihong Display Devices | Kweichow Moutai vs. Ningxia Building Materials | Kweichow Moutai vs. Guangzhou Tinci Materials | Kweichow Moutai vs. Cultural Investment Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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