Correlation Between Kweichow Moutai and Qingdao Baheal
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By analyzing existing cross correlation between Kweichow Moutai Co and Qingdao Baheal Medical, you can compare the effects of market volatilities on Kweichow Moutai and Qingdao Baheal 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 Qingdao Baheal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Qingdao Baheal.
Diversification Opportunities for Kweichow Moutai and Qingdao Baheal
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Qingdao is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Qingdao Baheal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Baheal Medical 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 Qingdao Baheal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Baheal Medical has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Qingdao Baheal go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Qingdao Baheal
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.42 times more return on investment than Qingdao Baheal. However, Kweichow Moutai Co is 2.39 times less risky than Qingdao Baheal. It trades about -0.03 of its potential returns per unit of risk. Qingdao Baheal Medical is currently generating about -0.17 per unit of risk. If you would invest 157,850 in Kweichow Moutai Co on September 14, 2024 and sell it today you would lose (1,270) from holding Kweichow Moutai Co or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Qingdao Baheal Medical
Performance |
| Timeline |
| Kweichow Moutai |
| Qingdao Baheal Medical |
Kweichow Moutai and Qingdao Baheal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Qingdao Baheal
The main advantage of trading using opposite Kweichow Moutai and Qingdao Baheal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Qingdao Baheal 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 Qingdao Baheal will offset losses from the drop in Qingdao Baheal's long position.| Kweichow Moutai vs. China Life Insurance | Kweichow Moutai vs. Cinda Securities Co | Kweichow Moutai vs. Piotech Inc A | Kweichow Moutai vs. Dongxing Sec Co |
| Qingdao Baheal vs. Ye Chiu Metal | Qingdao Baheal vs. Guangdong Jingyi Metal | Qingdao Baheal vs. Iat Automobile Technology | Qingdao Baheal vs. Guangzhou Haige 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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