Correlation Between Guangzhou Ruoyuchen and Kweichow Moutai
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Kweichow Moutai Co, you can compare the effects of market volatilities on Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Kweichow Moutai.
Diversification Opportunities for Guangzhou Ruoyuchen and Kweichow Moutai
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangzhou and Kweichow is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Kweichow Moutai
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 3.8 times more return on investment than Kweichow Moutai. However, Guangzhou Ruoyuchen is 3.8 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 -0.18 per unit of risk. If you would invest 2,800 in Guangzhou Ruoyuchen Information on November 3, 2024 and sell it today you would lose (78.00) from holding Guangzhou Ruoyuchen Information or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. Kweichow Moutai Co
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| Kweichow Moutai |
Guangzhou Ruoyuchen and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and Kweichow Moutai
The main advantage of trading using opposite Guangzhou Ruoyuchen and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen 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.| Guangzhou Ruoyuchen vs. PetroChina Co Ltd | Guangzhou Ruoyuchen vs. Industrial and Commercial | Guangzhou Ruoyuchen vs. China Petroleum Chemical | Guangzhou Ruoyuchen vs. China Construction Bank |
| Kweichow Moutai vs. Fujian Wanchen Biotechnology | Kweichow Moutai vs. Shaanxi Meineng Clean | Kweichow Moutai vs. Yili Chuanning Biotechnology | Kweichow Moutai vs. Kingclean Electric 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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