Correlation Between Kweichow Moutai and Goodwill E
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By analyzing existing cross correlation between Kweichow Moutai Co and Goodwill E Health, you can compare the effects of market volatilities on Kweichow Moutai and Goodwill E 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 Goodwill E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Goodwill E.
Diversification Opportunities for Kweichow Moutai and Goodwill E
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Goodwill is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Goodwill E Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodwill E Health 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 Goodwill E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodwill E Health has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Goodwill E go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Goodwill E
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.32 times more return on investment than Goodwill E. However, Kweichow Moutai Co is 3.08 times less risky than Goodwill E. It trades about -0.09 of its potential returns per unit of risk. Goodwill E Health is currently generating about -0.07 per unit of risk. If you would invest 156,500 in Kweichow Moutai Co on October 26, 2024 and sell it today you would lose (12,200) from holding Kweichow Moutai Co or give up 7.8% 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. Goodwill E Health
Performance |
| Timeline |
| Kweichow Moutai |
| Goodwill E Health |
Kweichow Moutai and Goodwill E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Goodwill E
The main advantage of trading using opposite Kweichow Moutai and Goodwill E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Goodwill E 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 Goodwill E will offset losses from the drop in Goodwill E's long position.| Kweichow Moutai vs. Cultural Investment Holdings | Kweichow Moutai vs. Jiangsu Yueda Investment | Kweichow Moutai vs. Beijing Jiaman Dress | Kweichow Moutai vs. Henan Shuanghui Investment |
| Goodwill E vs. Bank of China | Goodwill E vs. Kweichow Moutai Co | Goodwill E vs. PetroChina Co Ltd | Goodwill E vs. Bank of Communications |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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