Correlation Between Hunan Tyen and Kweichow Moutai
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By analyzing existing cross correlation between Hunan Tyen Machinery and Kweichow Moutai Co, you can compare the effects of market volatilities on Hunan Tyen and Kweichow Moutai 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 Hunan Tyen with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Kweichow Moutai.
Diversification Opportunities for Hunan Tyen and Kweichow Moutai
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hunan and Kweichow is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Hunan Tyen 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 Hunan Tyen Machinery are associated (or correlated) with Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of Hunan Tyen i.e., Hunan Tyen and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Hunan Tyen and Kweichow Moutai
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to generate 3.36 times more return on investment than Kweichow Moutai. However, Hunan Tyen is 3.36 times more volatile than Kweichow Moutai Co. It trades about 0.09 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.18 per unit of risk. If you would invest 485.00 in Hunan Tyen Machinery on November 3, 2024 and sell it today you would earn a total of 23.00 from holding Hunan Tyen Machinery or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Kweichow Moutai Co
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Kweichow Moutai |
Hunan Tyen and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Kweichow Moutai
The main advantage of trading using opposite Hunan Tyen and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen position performs unexpectedly, Kweichow Moutai 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 Kweichow Moutai will offset losses from the drop in Kweichow Moutai's long position.| Hunan Tyen vs. Beijing Seeyon Internet | Hunan Tyen vs. Soyea Technology Co | Hunan Tyen vs. Strait Innovation Internet | Hunan Tyen vs. 360 Security Technology |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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