Correlation Between Beijing Topnew and Kweichow Moutai
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By analyzing existing cross correlation between Beijing Topnew Info and Kweichow Moutai Co, you can compare the effects of market volatilities on Beijing Topnew 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 Beijing Topnew with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Topnew and Kweichow Moutai.
Diversification Opportunities for Beijing Topnew and Kweichow Moutai
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Kweichow is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Topnew Info and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Beijing Topnew 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 Beijing Topnew Info 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 Beijing Topnew i.e., Beijing Topnew and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Beijing Topnew and Kweichow Moutai
Assuming the 90 days trading horizon Beijing Topnew Info is expected to generate 1.82 times more return on investment than Kweichow Moutai. However, Beijing Topnew is 1.82 times more volatile than Kweichow Moutai Co. It trades about 0.12 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 3,294 in Beijing Topnew Info on September 2, 2024 and sell it today you would earn a total of 224.00 from holding Beijing Topnew Info or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Topnew Info vs. Kweichow Moutai Co
Performance |
| Timeline |
| Beijing Topnew Info |
| Kweichow Moutai |
Beijing Topnew and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Topnew and Kweichow Moutai
The main advantage of trading using opposite Beijing Topnew and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Topnew 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.| Beijing Topnew vs. Ming Yang Smart | Beijing Topnew vs. 159681 | Beijing Topnew vs. 159005 | Beijing Topnew vs. Loctek Ergonomic Technology |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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