Correlation Between Kweichow Moutai and Heilongjiang Publishing
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By analyzing existing cross correlation between Kweichow Moutai Co and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Kweichow Moutai and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Heilongjiang Publishing.
Diversification Opportunities for Kweichow Moutai and Heilongjiang Publishing
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Heilongjiang is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Heilongjiang Publishing
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.55 times more return on investment than Heilongjiang Publishing. However, Kweichow Moutai Co is 1.81 times less risky than Heilongjiang Publishing. It trades about -0.02 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about -0.01 per unit of risk. If you would invest 169,500 in Kweichow Moutai Co on August 27, 2024 and sell it today you would lose (18,718) from holding Kweichow Moutai Co or give up 11.04% 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. Heilongjiang Publishing Media
Performance |
| Timeline |
| Kweichow Moutai |
| Heilongjiang Publishing |
Kweichow Moutai and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Heilongjiang Publishing
The main advantage of trading using opposite Kweichow Moutai and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| Kweichow Moutai vs. 360 Security Technology | Kweichow Moutai vs. Dezhan HealthCare Co | Kweichow Moutai vs. Youngy Health Co | Kweichow Moutai vs. Mingchen Health Co |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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