Correlation Between Beijing Roborock and Kweichow Moutai
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By analyzing existing cross correlation between Beijing Roborock Technology and Kweichow Moutai Co, you can compare the effects of market volatilities on Beijing Roborock 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 Beijing Roborock with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Kweichow Moutai.
Diversification Opportunities for Beijing Roborock and Kweichow Moutai
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Kweichow is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Beijing Roborock 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 Beijing Roborock Technology 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 Beijing Roborock i.e., Beijing Roborock and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Beijing Roborock and Kweichow Moutai
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to under-perform the Kweichow Moutai. In addition to that, Beijing Roborock is 2.07 times more volatile than Kweichow Moutai Co. It trades about -0.43 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.11 per unit of volatility. If you would invest 156,500 in Kweichow Moutai Co on August 27, 2024 and sell it today you would lose (5,718) from holding Kweichow Moutai Co or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Kweichow Moutai Co
Performance |
| Timeline |
| Beijing Roborock Tec |
| Kweichow Moutai |
Beijing Roborock and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Kweichow Moutai
The main advantage of trading using opposite Beijing Roborock and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock 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.| Beijing Roborock vs. CGN Nuclear Technology | Beijing Roborock vs. Changjiang Jinggong Steel | Beijing Roborock vs. Lingyuan Iron Steel | Beijing Roborock vs. Bengang Steel Plates |
| Kweichow Moutai vs. 360 Security Technology | Kweichow Moutai vs. Dezhan HealthCare Co | Kweichow Moutai vs. Youngy Health Co | Kweichow Moutai vs. Mingchen Health 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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