Correlation Between Qingdao Hi-Tech and Kweichow Moutai
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By analyzing existing cross correlation between Qingdao Hi Tech Moulds and Kweichow Moutai Co, you can compare the effects of market volatilities on Qingdao Hi-Tech 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 Qingdao Hi-Tech with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Hi-Tech and Kweichow Moutai.
Diversification Opportunities for Qingdao Hi-Tech and Kweichow Moutai
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Kweichow is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Hi Tech Moulds and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Qingdao Hi-Tech 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 Qingdao Hi Tech Moulds 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 Qingdao Hi-Tech i.e., Qingdao Hi-Tech and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Qingdao Hi-Tech and Kweichow Moutai
Assuming the 90 days trading horizon Qingdao Hi Tech Moulds is expected to generate 2.29 times more return on investment than Kweichow Moutai. However, Qingdao Hi-Tech is 2.29 times more volatile than Kweichow Moutai Co. It trades about 0.25 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.14 per unit of risk. If you would invest 1,875 in Qingdao Hi Tech Moulds on November 4, 2024 and sell it today you would earn a total of 208.00 from holding Qingdao Hi Tech Moulds or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Hi Tech Moulds vs. Kweichow Moutai Co
Performance |
| Timeline |
| Qingdao Hi Tech |
| Kweichow Moutai |
Qingdao Hi-Tech and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Hi-Tech and Kweichow Moutai
The main advantage of trading using opposite Qingdao Hi-Tech and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Hi-Tech 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.| Qingdao Hi-Tech vs. Shuhua Sports Co | Qingdao Hi-Tech vs. Zhongyin Babi Food | Qingdao Hi-Tech vs. Youyou Foods Co | Qingdao Hi-Tech vs. Suzhou Weizhixiang Food |
| Kweichow Moutai vs. Shanghai Rongtai Health | Kweichow Moutai vs. Heren Health Co | Kweichow Moutai vs. De Rucci Healthy | Kweichow Moutai vs. Shandong Sanyuan Biotechnology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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