Correlation Between Kweichow Moutai and UCloud Technology
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By analyzing existing cross correlation between Kweichow Moutai Co and UCloud Technology Co, you can compare the effects of market volatilities on Kweichow Moutai and UCloud Technology 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 UCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and UCloud Technology.
Diversification Opportunities for Kweichow Moutai and UCloud Technology
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and UCloud is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and UCloud Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCloud Technology 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 UCloud Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCloud Technology has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and UCloud Technology go up and down completely randomly.
Pair Corralation between Kweichow Moutai and UCloud Technology
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the UCloud Technology. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.62 times less risky than UCloud Technology. The stock trades about -0.01 of its potential returns per unit of risk. The UCloud Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,323 in UCloud Technology Co on September 2, 2024 and sell it today you would earn a total of 133.00 from holding UCloud Technology Co or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. UCloud Technology Co
Performance |
| Timeline |
| Kweichow Moutai |
| UCloud Technology |
Kweichow Moutai and UCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and UCloud Technology
The main advantage of trading using opposite Kweichow Moutai and UCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, UCloud Technology 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 UCloud Technology will offset losses from the drop in UCloud Technology's long position.| Kweichow Moutai vs. Caihong Display Devices | Kweichow Moutai vs. Ningxia Building Materials | Kweichow Moutai vs. Guangzhou Tinci Materials | Kweichow Moutai vs. Cultural Investment Holdings |
| UCloud Technology vs. Nanjing Putian Telecommunications | UCloud Technology vs. Shenzhen Hifuture Electric | UCloud Technology vs. Tianjin Realty Development | UCloud Technology vs. Shenyang Huitian Thermal |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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