Correlation Between Kweichow Moutai and Wuhu Token
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By analyzing existing cross correlation between Kweichow Moutai Co and Wuhu Token Sciences, you can compare the effects of market volatilities on Kweichow Moutai and Wuhu Token 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 Wuhu Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Wuhu Token.
Diversification Opportunities for Kweichow Moutai and Wuhu Token
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Wuhu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Wuhu Token Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhu Token Sciences 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 Wuhu Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhu Token Sciences has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Wuhu Token go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Wuhu Token
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Wuhu Token. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.99 times less risky than Wuhu Token. The stock trades about 0.0 of its potential returns per unit of risk. The Wuhu Token Sciences is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 582.00 in Wuhu Token Sciences on August 31, 2024 and sell it today you would earn a total of 95.00 from holding Wuhu Token Sciences or generate 16.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Wuhu Token Sciences
Performance |
| Timeline |
| Kweichow Moutai |
| Wuhu Token Sciences |
Kweichow Moutai and Wuhu Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Wuhu Token
The main advantage of trading using opposite Kweichow Moutai and Wuhu Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Wuhu Token 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 Wuhu Token will offset losses from the drop in Wuhu Token's long position.| Kweichow Moutai vs. Changchun Engley Automobile | Kweichow Moutai vs. Fiberhome Telecommunication Technologies | Kweichow Moutai vs. Shandong Longquan Pipeline | Kweichow Moutai vs. Western Mining Co |
| Wuhu Token vs. Tieling Newcity Investment | Wuhu Token vs. China National Software | Wuhu Token vs. Zhejiang Construction Investment | Wuhu Token vs. Tsingtao Brewery 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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