Correlation Between Kweichow Moutai and Tianjin Realty
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By analyzing existing cross correlation between Kweichow Moutai Co and Tianjin Realty Development, you can compare the effects of market volatilities on Kweichow Moutai and Tianjin Realty 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 Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Tianjin Realty.
Diversification Opportunities for Kweichow Moutai and Tianjin Realty
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Tianjin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel 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 Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Tianjin Realty go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Tianjin Realty
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Tianjin Realty. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.41 times less risky than Tianjin Realty. The stock trades about -0.01 of its potential returns per unit of risk. The Tianjin Realty Development is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 246.00 in Tianjin Realty Development on September 3, 2024 and sell it today you would lose (13.00) from holding Tianjin Realty Development or give up 5.28% 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. Tianjin Realty Development
Performance |
| Timeline |
| Kweichow Moutai |
| Tianjin Realty Devel |
Kweichow Moutai and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Tianjin Realty
The main advantage of trading using opposite Kweichow Moutai and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Tianjin Realty 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 Tianjin Realty will offset losses from the drop in Tianjin Realty's long position.| Kweichow Moutai vs. China Railway Materials | Kweichow Moutai vs. Peoples Insurance of | Kweichow Moutai vs. Jinsanjiang Silicon Material | Kweichow Moutai vs. Guangdong Jingyi Metal |
| Tianjin Realty vs. Jiangxi JDL Environmental | Tianjin Realty vs. Duzhe Publishing Media | Tianjin Realty vs. Beijing SPC Environment | Tianjin Realty vs. Heilongjiang Publishing Media |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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