Correlation Between BeiGene and Kweichow Moutai
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By analyzing existing cross correlation between BeiGene and Kweichow Moutai Co, you can compare the effects of market volatilities on BeiGene 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 BeiGene with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Kweichow Moutai.
Diversification Opportunities for BeiGene and Kweichow Moutai
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BeiGene and Kweichow is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and BeiGene 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 BeiGene 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 BeiGene i.e., BeiGene and Kweichow Moutai go up and down completely randomly.
Pair Corralation between BeiGene and Kweichow Moutai
Assuming the 90 days trading horizon BeiGene is expected to generate 1.78 times more return on investment than Kweichow Moutai. However, BeiGene is 1.78 times more volatile than Kweichow Moutai Co. It trades about -0.05 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.11 per unit of risk. If you would invest 17,274 in BeiGene on August 27, 2024 and sell it today you would lose (631.00) from holding BeiGene or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Kweichow Moutai Co
Performance |
| Timeline |
| BeiGene |
| Kweichow Moutai |
BeiGene and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Kweichow Moutai
The main advantage of trading using opposite BeiGene and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene 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.| BeiGene vs. China Asset Management | BeiGene vs. Shandong Hi Speed RoadBridge | BeiGene vs. Road Environment Technology | BeiGene vs. Cicc Fund Management |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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