Correlation Between Kweichow Moutai and Glodon Software
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By analyzing existing cross correlation between Kweichow Moutai Co and Glodon Software Co, you can compare the effects of market volatilities on Kweichow Moutai and Glodon Software 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 Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Glodon Software.
Diversification Opportunities for Kweichow Moutai and Glodon Software
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kweichow and Glodon is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software 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 Glodon Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glodon Software has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Glodon Software go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Glodon Software
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Glodon Software. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.88 times less risky than Glodon Software. The stock trades about -0.14 of its potential returns per unit of risk. The Glodon Software Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,072 in Glodon Software Co on November 4, 2024 and sell it today you would earn a total of 96.00 from holding Glodon Software Co or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Glodon Software Co
Performance |
| Timeline |
| Kweichow Moutai |
| Glodon Software |
Kweichow Moutai and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Glodon Software
The main advantage of trading using opposite Kweichow Moutai and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Glodon Software 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 Glodon Software will offset losses from the drop in Glodon Software's long position.| Kweichow Moutai vs. Shanghai Rongtai Health | Kweichow Moutai vs. Heren Health Co | Kweichow Moutai vs. De Rucci Healthy | Kweichow Moutai vs. Shandong Sanyuan Biotechnology |
| Glodon Software vs. Chongqing Brewery Co | Glodon Software vs. Ningbo Tip Rubber | Glodon Software vs. Queclink Wireless Solutions | Glodon Software vs. Jiugui Liquor Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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