Correlation Between Thinkingdom Media and Kweichow Moutai
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By analyzing existing cross correlation between Thinkingdom Media Group and Kweichow Moutai Co, you can compare the effects of market volatilities on Thinkingdom Media 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 Thinkingdom Media with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Kweichow Moutai.
Diversification Opportunities for Thinkingdom Media and Kweichow Moutai
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thinkingdom and Kweichow is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Thinkingdom Media 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 Thinkingdom Media Group 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 Thinkingdom Media i.e., Thinkingdom Media and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Kweichow Moutai
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 1.72 times more return on investment than Kweichow Moutai. However, Thinkingdom Media is 1.72 times more volatile than Kweichow Moutai Co. It trades about 0.01 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.01 per unit of risk. If you would invest 2,131 in Thinkingdom Media Group on September 12, 2024 and sell it today you would lose (53.00) from holding Thinkingdom Media Group or give up 2.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Kweichow Moutai Co
Performance |
| Timeline |
| Thinkingdom Media |
| Kweichow Moutai |
Thinkingdom Media and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Kweichow Moutai
The main advantage of trading using opposite Thinkingdom Media and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media 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.| Thinkingdom Media vs. Kweichow Moutai Co | Thinkingdom Media vs. Shenzhen Mindray Bio Medical | Thinkingdom Media vs. G bits Network Technology | Thinkingdom Media vs. Beijing Roborock 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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