Correlation Between Maider Medical and Kweichow Moutai
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By analyzing existing cross correlation between Maider Medical Industry and Kweichow Moutai Co, you can compare the effects of market volatilities on Maider Medical 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 Maider Medical with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maider Medical and Kweichow Moutai.
Diversification Opportunities for Maider Medical and Kweichow Moutai
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maider and Kweichow is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Maider Medical Industry and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Maider Medical 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 Maider Medical Industry 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 Maider Medical i.e., Maider Medical and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Maider Medical and Kweichow Moutai
Assuming the 90 days trading horizon Maider Medical Industry is expected to under-perform the Kweichow Moutai. In addition to that, Maider Medical is 2.02 times more volatile than Kweichow Moutai Co. It trades about -0.07 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.01 per unit of volatility. If you would invest 161,918 in Kweichow Moutai Co on September 5, 2024 and sell it today you would lose (9,918) from holding Kweichow Moutai Co or give up 6.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maider Medical Industry vs. Kweichow Moutai Co
Performance |
| Timeline |
| Maider Medical Industry |
| Kweichow Moutai |
Maider Medical and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maider Medical and Kweichow Moutai
The main advantage of trading using opposite Maider Medical and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maider Medical 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.| Maider Medical vs. Kweichow Moutai Co | Maider Medical vs. Contemporary Amperex Technology | Maider Medical vs. G bits Network Technology | Maider Medical vs. Beijing Roborock Technology |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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