Correlation Between Kweichow Moutai and Super-Dragon Engineering
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By analyzing existing cross correlation between Kweichow Moutai Co and Super Dragon Engineering Plastics, you can compare the effects of market volatilities on Kweichow Moutai and Super-Dragon Engineering 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 Super-Dragon Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Super-Dragon Engineering.
Diversification Opportunities for Kweichow Moutai and Super-Dragon Engineering
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Super-Dragon is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Super Dragon Engineering Plast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super-Dragon Engineering 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 Super-Dragon Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super-Dragon Engineering has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Super-Dragon Engineering go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Super-Dragon Engineering
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Super-Dragon Engineering. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.0 times less risky than Super-Dragon Engineering. The stock trades about -0.02 of its potential returns per unit of risk. The Super Dragon Engineering Plastics is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 3,124 in Super Dragon Engineering Plastics on November 5, 2024 and sell it today you would earn a total of 337.00 from holding Super Dragon Engineering Plastics or generate 10.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Super Dragon Engineering Plast
Performance |
| Timeline |
| Kweichow Moutai |
| Super-Dragon Engineering |
Kweichow Moutai and Super-Dragon Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Super-Dragon Engineering
The main advantage of trading using opposite Kweichow Moutai and Super-Dragon Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Super-Dragon Engineering 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 Super-Dragon Engineering will offset losses from the drop in Super-Dragon Engineering'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 |
| Super-Dragon Engineering vs. MayAir Technology Co | Super-Dragon Engineering vs. Cabio Biotech Wuhan | Super-Dragon Engineering vs. Linktel Technologies Co | Super-Dragon Engineering vs. Air China Ltd |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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