Correlation Between Kweichow Moutai and Penyao Environmental
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By analyzing existing cross correlation between Kweichow Moutai Co and Penyao Environmental Protection, you can compare the effects of market volatilities on Kweichow Moutai and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Penyao Environmental.
Diversification Opportunities for Kweichow Moutai and Penyao Environmental
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kweichow and Penyao is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Penyao Environmental go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Penyao Environmental
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.71 times more return on investment than Penyao Environmental. However, Kweichow Moutai Co is 1.4 times less risky than Penyao Environmental. It trades about -0.14 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about -0.18 per unit of risk. If you would invest 147,500 in Kweichow Moutai Co on November 4, 2024 and sell it today you would lose (4,001) from holding Kweichow Moutai Co or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Penyao Environmental Protectio
Performance |
| Timeline |
| Kweichow Moutai |
| Penyao Environmental |
Kweichow Moutai and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Penyao Environmental
The main advantage of trading using opposite Kweichow Moutai and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental's long position.| Kweichow Moutai vs. Shanghai Rongtai Health | Kweichow Moutai vs. Heren Health Co | Kweichow Moutai vs. De Rucci Healthy | Kweichow Moutai vs. Shandong Sanyuan Biotechnology |
| Penyao Environmental vs. Jiugui Liquor Co | Penyao Environmental vs. Yan Tai Shuang | Penyao Environmental vs. Qingdao Foods Co | Penyao Environmental vs. Jiamei Food Packaging |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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