Correlation Between Kweichow Moutai and Highbroad Advanced
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By analyzing existing cross correlation between Kweichow Moutai Co and Highbroad Advanced Material, you can compare the effects of market volatilities on Kweichow Moutai and Highbroad Advanced 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 Highbroad Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Highbroad Advanced.
Diversification Opportunities for Kweichow Moutai and Highbroad Advanced
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Highbroad is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Highbroad Advanced Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highbroad Advanced 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 Highbroad Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highbroad Advanced has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Highbroad Advanced go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Highbroad Advanced
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.35 times more return on investment than Highbroad Advanced. However, Kweichow Moutai Co is 2.82 times less risky than Highbroad Advanced. It trades about -0.28 of its potential returns per unit of risk. Highbroad Advanced Material is currently generating about -0.19 per unit of risk. If you would invest 153,882 in Kweichow Moutai Co on October 25, 2024 and sell it today you would lose (9,782) from holding Kweichow Moutai Co or give up 6.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Highbroad Advanced Material
Performance |
| Timeline |
| Kweichow Moutai |
| Highbroad Advanced |
Kweichow Moutai and Highbroad Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Highbroad Advanced
The main advantage of trading using opposite Kweichow Moutai and Highbroad Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Highbroad Advanced 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 Highbroad Advanced will offset losses from the drop in Highbroad Advanced's long position.| Kweichow Moutai vs. Southchip Semiconductor Technology | Kweichow Moutai vs. Yingde Greatchem Chemicals | Kweichow Moutai vs. Aba Chemicals Corp | Kweichow Moutai vs. Easyhome New Retail |
| Highbroad Advanced vs. Kweichow Moutai Co | Highbroad Advanced vs. NAURA Technology Group | Highbroad Advanced vs. APT Medical | Highbroad Advanced vs. BYD Co 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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