Correlation Between Snap and Kweichow Moutai
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By analyzing existing cross correlation between Snap Inc and Kweichow Moutai Co, you can compare the effects of market volatilities on Snap 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 Snap with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Kweichow Moutai.
Diversification Opportunities for Snap and Kweichow Moutai
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Snap and Kweichow is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Snap 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 Snap Inc 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 Snap i.e., Snap and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Snap and Kweichow Moutai
Given the investment horizon of 90 days Snap Inc is expected to under-perform the Kweichow Moutai. In addition to that, Snap is 2.04 times more volatile than Kweichow Moutai Co. It trades about -0.11 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. Kweichow Moutai Co
Performance |
| Timeline |
| Snap Inc |
| Kweichow Moutai |
Snap and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Kweichow Moutai
The main advantage of trading using opposite Snap and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap 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.The idea behind Snap Inc and Kweichow Moutai Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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