Correlation Between Ningbo Tip and Kweichow Moutai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Tip Rubber and Kweichow Moutai Co, you can compare the effects of market volatilities on Ningbo Tip 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 Ningbo Tip with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Kweichow Moutai.
Diversification Opportunities for Ningbo Tip and Kweichow Moutai
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Kweichow is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Ningbo Tip 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 Ningbo Tip Rubber 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 Ningbo Tip i.e., Ningbo Tip and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Ningbo Tip and Kweichow Moutai
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 2.2 times more return on investment than Kweichow Moutai. However, Ningbo Tip is 2.2 times more volatile than Kweichow Moutai Co. It trades about 0.03 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.26 per unit of risk. If you would invest 1,296 in Ningbo Tip Rubber on October 29, 2024 and sell it today you would earn a total of 14.00 from holding Ningbo Tip Rubber or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Kweichow Moutai Co
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Kweichow Moutai |
Ningbo Tip and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Kweichow Moutai
The main advantage of trading using opposite Ningbo Tip and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip 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.| Ningbo Tip vs. HeNan Splendor Science | Ningbo Tip vs. Xiamen Bank Co | Ningbo Tip vs. Bank of Communications | Ningbo Tip vs. Postal Savings Bank |
| Kweichow Moutai vs. Do Fluoride Chemicals Co | Kweichow Moutai vs. Porton Fine Chemicals | Kweichow Moutai vs. Guangzhou Zhujiang Brewery | Kweichow Moutai vs. Guangdong Wens Foodstuff |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets |