Correlation Between Kweichow Moutai and Healthcare
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By analyzing existing cross correlation between Kweichow Moutai Co and Healthcare Co, you can compare the effects of market volatilities on Kweichow Moutai and Healthcare 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 Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Healthcare.
Diversification Opportunities for Kweichow Moutai and Healthcare
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Healthcare is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare 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 Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Healthcare go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Healthcare
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.69 times more return on investment than Healthcare. However, Kweichow Moutai Co is 1.44 times less risky than Healthcare. It trades about -0.01 of its potential returns per unit of risk. Healthcare Co is currently generating about -0.03 per unit of risk. If you would invest 170,222 in Kweichow Moutai Co on September 3, 2024 and sell it today you would lose (17,648) from holding Kweichow Moutai Co or give up 10.37% 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. Healthcare Co
Performance |
| Timeline |
| Kweichow Moutai |
| Healthcare |
Kweichow Moutai and Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Healthcare
The main advantage of trading using opposite Kweichow Moutai and Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Healthcare 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 Healthcare will offset losses from the drop in Healthcare'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 |
| Healthcare vs. PetroChina Co Ltd | Healthcare vs. China Mobile Limited | Healthcare vs. Industrial and Commercial | Healthcare vs. China Life Insurance |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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