Correlation Between Tongyu Communication and Kweichow Moutai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongyu Communication and Kweichow Moutai Co, you can compare the effects of market volatilities on Tongyu Communication 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 Tongyu Communication with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Kweichow Moutai.
Diversification Opportunities for Tongyu Communication and Kweichow Moutai
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tongyu and Kweichow is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Tongyu Communication 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 Tongyu Communication 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 Tongyu Communication i.e., Tongyu Communication and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Tongyu Communication and Kweichow Moutai
Assuming the 90 days trading horizon Tongyu Communication is expected to under-perform the Kweichow Moutai. In addition to that, Tongyu Communication is 2.94 times more volatile than Kweichow Moutai Co. It trades about -0.15 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.09 per unit of volatility. If you would invest 150,368 in Kweichow Moutai Co on October 17, 2024 and sell it today you would lose (3,241) from holding Kweichow Moutai Co or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Kweichow Moutai Co
Performance |
| Timeline |
| Tongyu Communication |
| Kweichow Moutai |
Tongyu Communication and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Kweichow Moutai
The main advantage of trading using opposite Tongyu Communication and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication 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.| Tongyu Communication vs. Rising Nonferrous Metals | Tongyu Communication vs. Offshore Oil Engineering | Tongyu Communication vs. Jiangxi Naipu Mining | Tongyu Communication vs. Zhejiang Kingland Pipeline |
| Kweichow Moutai vs. Fiberhome Telecommunication Technologies | Kweichow Moutai vs. Runjian Communication Co | Kweichow Moutai vs. Xiangyang Automobile Bearing | Kweichow Moutai vs. Dongfeng Automobile 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |