Correlation Between Kweichow Moutai and AVCON Information
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By analyzing existing cross correlation between Kweichow Moutai Co and AVCON Information Tech, you can compare the effects of market volatilities on Kweichow Moutai and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and AVCON Information.
Diversification Opportunities for Kweichow Moutai and AVCON Information
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and AVCON is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and AVCON Information go up and down completely randomly.
Pair Corralation between Kweichow Moutai and AVCON Information
Assuming the 90 days trading horizon Kweichow Moutai is expected to generate 4.47 times less return on investment than AVCON Information. But when comparing it to its historical volatility, Kweichow Moutai Co is 1.54 times less risky than AVCON Information. It trades about 0.07 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 310.00 in AVCON Information Tech on September 2, 2024 and sell it today you would earn a total of 173.00 from holding AVCON Information Tech or generate 55.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. AVCON Information Tech
Performance |
| Timeline |
| Kweichow Moutai |
| AVCON Information Tech |
Kweichow Moutai and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and AVCON Information
The main advantage of trading using opposite Kweichow Moutai and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Kweichow Moutai vs. Caihong Display Devices | Kweichow Moutai vs. Ningxia Building Materials | Kweichow Moutai vs. Guangzhou Tinci Materials | Kweichow Moutai vs. Cultural Investment Holdings |
| AVCON Information vs. Industrial and Commercial | AVCON Information vs. Kweichow Moutai Co | AVCON Information vs. Agricultural Bank of | AVCON Information 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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