Correlation Between Guangdong Brandmax and Kweichow Moutai
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Kweichow Moutai Co, you can compare the effects of market volatilities on Guangdong Brandmax 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 Guangdong Brandmax with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Kweichow Moutai.
Diversification Opportunities for Guangdong Brandmax and Kweichow Moutai
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Kweichow is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Guangdong Brandmax 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 Guangdong Brandmax Marketing 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 Guangdong Brandmax i.e., Guangdong Brandmax and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Kweichow Moutai
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 2.62 times more return on investment than Kweichow Moutai. However, Guangdong Brandmax is 2.62 times more volatile than Kweichow Moutai Co. It trades about 0.04 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.02 per unit of risk. If you would invest 776.00 in Guangdong Brandmax Marketing on September 12, 2024 and sell it today you would earn a total of 240.00 from holding Guangdong Brandmax Marketing or generate 30.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. Kweichow Moutai Co
Performance |
| Timeline |
| Guangdong Brandmax |
| Kweichow Moutai |
Guangdong Brandmax and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Kweichow Moutai
The main advantage of trading using opposite Guangdong Brandmax and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax 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.| Guangdong Brandmax vs. Kweichow Moutai Co | Guangdong Brandmax vs. Shenzhen Mindray Bio Medical | Guangdong Brandmax vs. G bits Network Technology | Guangdong Brandmax 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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