Correlation Between Kweichow Moutai and Innovative Medical
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By analyzing existing cross correlation between Kweichow Moutai Co and Innovative Medical Management, you can compare the effects of market volatilities on Kweichow Moutai and Innovative Medical 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 Kweichow Moutai with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Innovative Medical.
Diversification Opportunities for Kweichow Moutai and Innovative Medical
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Innovative is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical and Kweichow Moutai 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 Kweichow Moutai Co are associated (or correlated) with Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Innovative Medical go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Innovative Medical
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.29 times more return on investment than Innovative Medical. However, Kweichow Moutai Co is 3.46 times less risky than Innovative Medical. It trades about -0.11 of its potential returns per unit of risk. Innovative Medical Management is currently generating about -0.03 per unit of risk. If you would invest 157,100 in Kweichow Moutai Co on November 6, 2024 and sell it today you would lose (13,601) from holding Kweichow Moutai Co or give up 8.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Innovative Medical Management
Performance |
| Timeline |
| Kweichow Moutai |
| Innovative Medical |
Kweichow Moutai and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Innovative Medical
The main advantage of trading using opposite Kweichow Moutai and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Innovative Medical 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 Innovative Medical will offset losses from the drop in Innovative Medical's long position.| Kweichow Moutai vs. Juneyao Airlines | Kweichow Moutai vs. DO Home Collection | Kweichow Moutai vs. Zhangjiagang Elegant Home | Kweichow Moutai vs. Hongrun Construction Group |
| Innovative Medical vs. Zhengzhou Coal Mining | Innovative Medical vs. BrightGene Bio Medical | Innovative Medical vs. Pengxin International Mining | Innovative Medical vs. Guangdong Transtek Medical |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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