Correlation Between Kweichow Moutai and Flat Glass
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By analyzing existing cross correlation between Kweichow Moutai Co and Flat Glass Group, you can compare the effects of market volatilities on Kweichow Moutai and Flat Glass 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 Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Flat Glass.
Diversification Opportunities for Kweichow Moutai and Flat Glass
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Flat is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group 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 Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Flat Glass go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Flat Glass
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.54 times more return on investment than Flat Glass. However, Kweichow Moutai Co is 1.84 times less risky than Flat Glass. It trades about 0.11 of its potential returns per unit of risk. Flat Glass Group is currently generating about -0.32 per unit of risk. If you would invest 149,857 in Kweichow Moutai Co on September 26, 2024 and sell it today you would earn a total of 4,025 from holding Kweichow Moutai Co or generate 2.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kweichow Moutai Co vs. Flat Glass Group
Performance |
Timeline |
Kweichow Moutai |
Flat Glass Group |
Kweichow Moutai and Flat Glass Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kweichow Moutai and Flat Glass
The main advantage of trading using opposite Kweichow Moutai and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' long position.Kweichow Moutai vs. China Life Insurance | Kweichow Moutai vs. Beijing Wandong Medical | Kweichow Moutai vs. Allmed Medical Products | Kweichow Moutai vs. Lootom Telcovideo Network |
Flat Glass vs. Kweichow Moutai Co | Flat Glass vs. Contemporary Amperex Technology | Flat Glass vs. G bits Network Technology | Flat Glass vs. BYD Co Ltd |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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