Correlation Between Healthcare and Kweichow Moutai
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By analyzing existing cross correlation between Healthcare Co and Kweichow Moutai Co, you can compare the effects of market volatilities on Healthcare 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 Healthcare with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Kweichow Moutai.
Diversification Opportunities for Healthcare and Kweichow Moutai
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Healthcare and Kweichow is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Healthcare 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 Healthcare Co 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 Healthcare i.e., Healthcare and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Healthcare and Kweichow Moutai
Assuming the 90 days trading horizon Healthcare Co is expected to generate 1.62 times more return on investment than Kweichow Moutai. However, Healthcare is 1.62 times more volatile than Kweichow Moutai Co. It trades about 0.02 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.15 per unit of risk. If you would invest 734.00 in Healthcare Co on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Healthcare Co or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Kweichow Moutai Co
Performance |
| Timeline |
| Healthcare |
| Kweichow Moutai |
Healthcare and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Kweichow Moutai
The main advantage of trading using opposite Healthcare and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare 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.| Healthcare vs. PetroChina Co Ltd | Healthcare vs. China Mobile Limited | Healthcare vs. Industrial and Commercial | Healthcare vs. China Life Insurance |
| Kweichow Moutai vs. China Railway Materials | Kweichow Moutai vs. Peoples Insurance of | Kweichow Moutai vs. Jinsanjiang Silicon Material | Kweichow Moutai vs. Guangdong Jingyi Metal |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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