Correlation Between Western Superconducting and Kweichow Moutai
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By analyzing existing cross correlation between Western Superconducting Tech and Kweichow Moutai Co, you can compare the effects of market volatilities on Western Superconducting 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 Western Superconducting with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Superconducting and Kweichow Moutai.
Diversification Opportunities for Western Superconducting and Kweichow Moutai
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Western and Kweichow is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Western Superconducting Tech and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Western Superconducting 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 Western Superconducting Tech 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 Western Superconducting i.e., Western Superconducting and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Western Superconducting and Kweichow Moutai
Assuming the 90 days trading horizon Western Superconducting Tech is expected to under-perform the Kweichow Moutai. In addition to that, Western Superconducting is 1.84 times more volatile than Kweichow Moutai Co. It trades about -0.21 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.02 per unit of volatility. If you would invest 153,200 in Kweichow Moutai Co on August 31, 2024 and sell it today you would lose (1,400) from holding Kweichow Moutai Co or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Superconducting Tech vs. Kweichow Moutai Co
Performance |
| Timeline |
| Western Superconducting |
| Kweichow Moutai |
Western Superconducting and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Superconducting and Kweichow Moutai
The main advantage of trading using opposite Western Superconducting and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Superconducting 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.| Western Superconducting vs. Spring Airlines Co | Western Superconducting vs. Guocheng Mining Co | Western Superconducting vs. Uroica Mining Safety | Western Superconducting vs. Dalian Thermal Power |
| Kweichow Moutai vs. Changchun Engley Automobile | Kweichow Moutai vs. Fiberhome Telecommunication Technologies | Kweichow Moutai vs. Shandong Longquan Pipeline | Kweichow Moutai vs. Western Mining Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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