Correlation Between Kweichow Moutai and Kingclean Electric
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By analyzing existing cross correlation between Kweichow Moutai Co and Kingclean Electric Co, you can compare the effects of market volatilities on Kweichow Moutai and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Kingclean Electric.
Diversification Opportunities for Kweichow Moutai and Kingclean Electric
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Kingclean is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Kingclean Electric go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Kingclean Electric
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.73 times more return on investment than Kingclean Electric. However, Kweichow Moutai Co is 1.37 times less risky than Kingclean Electric. It trades about 0.0 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.01 per unit of risk. If you would invest 164,191 in Kweichow Moutai Co on August 27, 2024 and sell it today you would lose (13,409) from holding Kweichow Moutai Co or give up 8.17% 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. Kingclean Electric Co
Performance |
| Timeline |
| Kweichow Moutai |
| Kingclean Electric |
Kweichow Moutai and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Kingclean Electric
The main advantage of trading using opposite Kweichow Moutai and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Kweichow Moutai vs. Xiangyang Automobile Bearing | Kweichow Moutai vs. Northking Information Technology | Kweichow Moutai vs. Niutech Environment Technology | Kweichow Moutai vs. Western Superconducting Tech |
| Kingclean Electric vs. Kweichow Moutai Co | Kingclean Electric vs. NAURA Technology Group | Kingclean Electric vs. Zhejiang Orient Gene | Kingclean Electric vs. APT Medical |
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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