Correlation Between Kweichow Moutai and Beijing Scitop
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By analyzing existing cross correlation between Kweichow Moutai Co and Beijing Scitop Bio, you can compare the effects of market volatilities on Kweichow Moutai and Beijing Scitop 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 Beijing Scitop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Beijing Scitop.
Diversification Opportunities for Kweichow Moutai and Beijing Scitop
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Beijing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Beijing Scitop Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Scitop Bio 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 Beijing Scitop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Scitop Bio has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Beijing Scitop go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Beijing Scitop
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.75 times more return on investment than Beijing Scitop. However, Kweichow Moutai Co is 1.33 times less risky than Beijing Scitop. It trades about 0.02 of its potential returns per unit of risk. Beijing Scitop Bio is currently generating about 0.01 per unit of risk. If you would invest 141,001 in Kweichow Moutai Co on November 3, 2024 and sell it today you would earn a total of 2,498 from holding Kweichow Moutai Co or generate 1.77% 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. Beijing Scitop Bio
Performance |
| Timeline |
| Kweichow Moutai |
| Beijing Scitop Bio |
Kweichow Moutai and Beijing Scitop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Beijing Scitop
The main advantage of trading using opposite Kweichow Moutai and Beijing Scitop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Beijing Scitop 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 Beijing Scitop will offset losses from the drop in Beijing Scitop's long position.| Kweichow Moutai vs. Fujian Wanchen Biotechnology | Kweichow Moutai vs. Shaanxi Meineng Clean | Kweichow Moutai vs. Yili Chuanning Biotechnology | Kweichow Moutai vs. Kingclean Electric Co |
| Beijing Scitop vs. Fiberhome Telecommunication Technologies | Beijing Scitop vs. Runjian Communication Co | Beijing Scitop vs. Shenyang Huitian Thermal | Beijing Scitop vs. Eastern Communications 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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