Correlation Between Kweichow Moutai and Shenzhen Bioeasy
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By analyzing existing cross correlation between Kweichow Moutai Co and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Kweichow Moutai and Shenzhen Bioeasy 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 Kweichow Moutai with a short position of Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shenzhen Bioeasy.
Diversification Opportunities for Kweichow Moutai and Shenzhen Bioeasy
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Shenzhen is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio and Kweichow Moutai 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 Kweichow Moutai Co are associated (or correlated) with Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shenzhen Bioeasy
Assuming the 90 days trading horizon Kweichow Moutai is expected to generate 13.71 times less return on investment than Shenzhen Bioeasy. But when comparing it to its historical volatility, Kweichow Moutai Co is 2.22 times less risky than Shenzhen Bioeasy. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 639.00 in Shenzhen Bioeasy Biotechnology on September 12, 2024 and sell it today you would earn a total of 368.00 from holding Shenzhen Bioeasy Biotechnology or generate 57.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kweichow Moutai Co vs. Shenzhen Bioeasy Biotechnology
Performance |
Timeline |
Kweichow Moutai |
Shenzhen Bioeasy Bio |
Kweichow Moutai and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kweichow Moutai and Shenzhen Bioeasy
The main advantage of trading using opposite Kweichow Moutai and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shenzhen Bioeasy 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 Shenzhen Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.Kweichow Moutai vs. Luyin Investment Group | Kweichow Moutai vs. Sichuan Fulin Transportation | Kweichow Moutai vs. Zhongshan Broad Ocean Motor | Kweichow Moutai vs. Southchip Semiconductor Technology |
Shenzhen Bioeasy vs. Cultural Investment Holdings | Shenzhen Bioeasy vs. Gome Telecom Equipment | Shenzhen Bioeasy vs. Holitech Technology Co | Shenzhen Bioeasy vs. Zotye Automobile 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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