Correlation Between Kweichow Moutai and Double Medical
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By analyzing existing cross correlation between Kweichow Moutai Co and Double Medical Technology, you can compare the effects of market volatilities on Kweichow Moutai and Double 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 Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Double Medical.
Diversification Opportunities for Kweichow Moutai and Double Medical
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Double is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Double Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Double Medical Technology 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 Double Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Double Medical Technology has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Double Medical go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Double Medical
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.47 times more return on investment than Double Medical. However, Kweichow Moutai Co is 2.14 times less risky than Double Medical. It trades about -0.14 of its potential returns per unit of risk. Double Medical Technology is currently generating about -0.17 per unit of risk. If you would invest 157,720 in Kweichow Moutai Co on September 13, 2024 and sell it today you would lose (4,160) from holding Kweichow Moutai Co or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Double Medical Technology
Performance |
| Timeline |
| Kweichow Moutai |
| Double Medical Technology |
Kweichow Moutai and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Double Medical
The main advantage of trading using opposite Kweichow Moutai and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Double 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 Double Medical will offset losses from the drop in Double Medical's long position.| Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. China Sports Industry | Kweichow Moutai vs. Shuhua Sports Co | Kweichow Moutai vs. Jiangsu Jinling Sports |
| Double Medical vs. Industrial and Commercial | Double Medical vs. Kweichow Moutai Co | Double Medical vs. Agricultural Bank of | Double Medical vs. China Mobile Limited |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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