Correlation Between Xiangyu Medical and Kweichow Moutai
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By analyzing existing cross correlation between Xiangyu Medical Co and Kweichow Moutai Co, you can compare the effects of market volatilities on Xiangyu 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 Xiangyu Medical with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Kweichow Moutai.
Diversification Opportunities for Xiangyu Medical and Kweichow Moutai
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyu and Kweichow is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Xiangyu 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 Xiangyu Medical Co 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 Xiangyu Medical i.e., Xiangyu Medical and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Kweichow Moutai
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 1.99 times more return on investment than Kweichow Moutai. However, Xiangyu Medical is 1.99 times more volatile than Kweichow Moutai Co. It trades about 0.02 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.01 per unit of risk. If you would invest 3,081 in Xiangyu Medical Co on September 5, 2024 and sell it today you would earn a total of 39.00 from holding Xiangyu Medical Co or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Kweichow Moutai Co
Performance |
| Timeline |
| Xiangyu Medical |
| Kweichow Moutai |
Xiangyu Medical and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Kweichow Moutai
The main advantage of trading using opposite Xiangyu Medical and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu 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.| Xiangyu Medical vs. Kweichow Moutai Co | Xiangyu Medical vs. Contemporary Amperex Technology | Xiangyu Medical vs. G bits Network Technology | Xiangyu 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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