Correlation Between Jafron Biomedical and Kweichow Moutai
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By analyzing existing cross correlation between Jafron Biomedical Co and Kweichow Moutai Co, you can compare the effects of market volatilities on Jafron Biomedical 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 Jafron Biomedical with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jafron Biomedical and Kweichow Moutai.
Diversification Opportunities for Jafron Biomedical and Kweichow Moutai
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jafron and Kweichow is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jafron Biomedical Co and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Jafron Biomedical 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 Jafron Biomedical Co 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 Jafron Biomedical i.e., Jafron Biomedical and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Jafron Biomedical and Kweichow Moutai
Assuming the 90 days trading horizon Jafron Biomedical Co is expected to generate 1.65 times more return on investment than Kweichow Moutai. However, Jafron Biomedical is 1.65 times more volatile than Kweichow Moutai Co. It trades about 0.01 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 3,064 in Jafron Biomedical Co on September 5, 2024 and sell it today you would lose (26.00) from holding Jafron Biomedical Co or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jafron Biomedical Co vs. Kweichow Moutai Co
Performance |
| Timeline |
| Jafron Biomedical |
| Kweichow Moutai |
Jafron Biomedical and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jafron Biomedical and Kweichow Moutai
The main advantage of trading using opposite Jafron Biomedical and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jafron Biomedical 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.| Jafron Biomedical vs. Kweichow Moutai Co | Jafron Biomedical vs. Contemporary Amperex Technology | Jafron Biomedical vs. G bits Network Technology | Jafron Biomedical vs. Beijing Roborock Technology |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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