Correlation Between Kweichow Moutai and Ingenic Semiconductor
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By analyzing existing cross correlation between Kweichow Moutai Co and Ingenic Semiconductor, you can compare the effects of market volatilities on Kweichow Moutai and Ingenic Semiconductor 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 Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Ingenic Semiconductor.
Diversification Opportunities for Kweichow Moutai and Ingenic Semiconductor
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Ingenic is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor 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 Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Ingenic Semiconductor
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Ingenic Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.16 times less risky than Ingenic Semiconductor. The stock trades about -0.02 of its potential returns per unit of risk. The Ingenic Semiconductor is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,755 in Ingenic Semiconductor on October 27, 2024 and sell it today you would lose (1,104) from holding Ingenic Semiconductor or give up 14.24% 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. Ingenic Semiconductor
Performance |
| Timeline |
| Kweichow Moutai |
| Ingenic Semiconductor |
Kweichow Moutai and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Ingenic Semiconductor
The main advantage of trading using opposite Kweichow Moutai and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Ingenic Semiconductor 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 Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor's long position.| Kweichow Moutai vs. Easyhome New Retail | Kweichow Moutai vs. Peoples Insurance of | Kweichow Moutai vs. Changjiang Jinggong Steel | Kweichow Moutai vs. UE Furniture 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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