Correlation Between Kweichow Moutai and Fibocom Wireless
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By analyzing existing cross correlation between Kweichow Moutai Co and Fibocom Wireless, you can compare the effects of market volatilities on Kweichow Moutai and Fibocom Wireless 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 Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Fibocom Wireless.
Diversification Opportunities for Kweichow Moutai and Fibocom Wireless
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Fibocom is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless 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 Fibocom Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibocom Wireless has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Fibocom Wireless
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.23 times less risky than Fibocom Wireless. The stock trades about -0.01 of its potential returns per unit of risk. The Fibocom Wireless is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,532 in Fibocom Wireless on September 3, 2024 and sell it today you would earn a total of 160.00 from holding Fibocom Wireless or generate 10.44% 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. Fibocom Wireless
Performance |
| Timeline |
| Kweichow Moutai |
| Fibocom Wireless |
Kweichow Moutai and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Fibocom Wireless
The main advantage of trading using opposite Kweichow Moutai and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Fibocom Wireless 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 Fibocom Wireless will offset losses from the drop in Fibocom Wireless' long position.| Kweichow Moutai vs. China Railway Materials | Kweichow Moutai vs. Peoples Insurance of | Kweichow Moutai vs. Jinsanjiang Silicon Material | Kweichow Moutai vs. Guangdong Jingyi Metal |
| Fibocom Wireless vs. Agricultural Bank of | Fibocom Wireless vs. China Construction Bank | Fibocom Wireless vs. Postal Savings Bank | Fibocom Wireless vs. Bank of Communications |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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