Correlation Between Zhejiang Publishing and Kweichow Moutai
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By analyzing existing cross correlation between Zhejiang Publishing Media and Kweichow Moutai Co, you can compare the effects of market volatilities on Zhejiang Publishing 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 Zhejiang Publishing with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Kweichow Moutai.
Diversification Opportunities for Zhejiang Publishing and Kweichow Moutai
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Kweichow is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Zhejiang Publishing 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 Zhejiang Publishing Media 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 Zhejiang Publishing i.e., Zhejiang Publishing and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Kweichow Moutai
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to generate 2.85 times more return on investment than Kweichow Moutai. However, Zhejiang Publishing is 2.85 times more volatile than Kweichow Moutai Co. It trades about 0.12 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.14 per unit of risk. If you would invest 815.00 in Zhejiang Publishing Media on September 13, 2024 and sell it today you would earn a total of 46.00 from holding Zhejiang Publishing Media or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. Kweichow Moutai Co
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Kweichow Moutai |
Zhejiang Publishing and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Kweichow Moutai
The main advantage of trading using opposite Zhejiang Publishing and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing 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.| Zhejiang Publishing vs. Western Mining Co | Zhejiang Publishing vs. Linewell Software Co | Zhejiang Publishing vs. Shanghai Ziyan Foods | Zhejiang Publishing vs. Youyou Foods Co |
| Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. China Sports Industry | Kweichow Moutai vs. Shuhua Sports Co | Kweichow Moutai vs. Jiangsu Jinling Sports |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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