Correlation Between Kweichow Moutai and China Publishing
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By analyzing existing cross correlation between Kweichow Moutai Co and China Publishing Media, you can compare the effects of market volatilities on Kweichow Moutai and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and China Publishing.
Diversification Opportunities for Kweichow Moutai and China Publishing
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and China is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and China Publishing go up and down completely randomly.
Pair Corralation between Kweichow Moutai and China Publishing
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the China Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.85 times less risky than China Publishing. The stock trades about -0.02 of its potential returns per unit of risk. The China Publishing Media is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 963.00 in China Publishing Media on September 12, 2024 and sell it today you would lose (108.00) from holding China Publishing Media or give up 11.21% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kweichow Moutai Co vs. China Publishing Media
Performance |
Timeline |
Kweichow Moutai |
China Publishing Media |
Kweichow Moutai and China Publishing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kweichow Moutai and China Publishing
The main advantage of trading using opposite Kweichow Moutai and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing'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 |
China Publishing vs. Kweichow Moutai Co | China Publishing vs. Shenzhen Mindray Bio Medical | China Publishing vs. G bits Network Technology | China Publishing vs. Beijing Roborock Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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