Correlation Between Kweichow Moutai and Circuit Fabology
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By analyzing existing cross correlation between Kweichow Moutai Co and Circuit Fabology Microelectronics, you can compare the effects of market volatilities on Kweichow Moutai and Circuit Fabology 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 Circuit Fabology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Circuit Fabology.
Diversification Opportunities for Kweichow Moutai and Circuit Fabology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Circuit is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Circuit Fabology Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Circuit Fabology Mic 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 Circuit Fabology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Circuit Fabology Mic has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Circuit Fabology go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Circuit Fabology
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Circuit Fabology. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.17 times less risky than Circuit Fabology. The stock trades about -0.01 of its potential returns per unit of risk. The Circuit Fabology Microelectronics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,126 in Circuit Fabology Microelectronics on August 27, 2024 and sell it today you would lose (876.00) from holding Circuit Fabology Microelectronics or give up 12.29% 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. Circuit Fabology Microelectron
Performance |
| Timeline |
| Kweichow Moutai |
| Circuit Fabology Mic |
Kweichow Moutai and Circuit Fabology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Circuit Fabology
The main advantage of trading using opposite Kweichow Moutai and Circuit Fabology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Circuit Fabology 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 Circuit Fabology will offset losses from the drop in Circuit Fabology'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 |
| Circuit Fabology vs. Nanjing Putian Telecommunications | Circuit Fabology vs. Shenzhen Hifuture Electric | Circuit Fabology vs. Shenyang Huitian Thermal | Circuit Fabology vs. Jiangsu Xinning Modern |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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