Correlation Between Kweichow Moutai and A Zenith
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By analyzing existing cross correlation between Kweichow Moutai Co and A Zenith Home Furnishings, you can compare the effects of market volatilities on Kweichow Moutai and A Zenith 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 A Zenith. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and A Zenith.
Diversification Opportunities for Kweichow Moutai and A Zenith
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kweichow and 603389 is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and A Zenith Home Furnishings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Zenith Home 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 A Zenith. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Zenith Home has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and A Zenith go up and down completely randomly.
Pair Corralation between Kweichow Moutai and A Zenith
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the A Zenith. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.81 times less risky than A Zenith. The stock trades about -0.03 of its potential returns per unit of risk. The A Zenith Home Furnishings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 545.00 in A Zenith Home Furnishings on October 10, 2024 and sell it today you would earn a total of 42.00 from holding A Zenith Home Furnishings or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kweichow Moutai Co vs. A Zenith Home Furnishings
Performance |
| Timeline |
| Kweichow Moutai |
| A Zenith Home |
Kweichow Moutai and A Zenith Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and A Zenith
The main advantage of trading using opposite Kweichow Moutai and A Zenith positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, A Zenith 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 A Zenith will offset losses from the drop in A Zenith's long position.| Kweichow Moutai vs. Zhejiang Construction Investment | Kweichow Moutai vs. Wuhan Yangtze Communication | Kweichow Moutai vs. Eastern Communications Co | Kweichow Moutai vs. State Grid InformationCommunication |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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