Correlation Between Piotech and Kweichow Moutai
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By analyzing existing cross correlation between Piotech Inc A and Kweichow Moutai Co, you can compare the effects of market volatilities on Piotech 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 Piotech with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Kweichow Moutai.
Diversification Opportunities for Piotech and Kweichow Moutai
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Piotech and Kweichow is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Piotech 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 Piotech Inc A 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 Piotech i.e., Piotech and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Piotech and Kweichow Moutai
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the Kweichow Moutai. In addition to that, Piotech is 2.49 times more volatile than Kweichow Moutai Co. It trades about -0.01 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 176,250 in Kweichow Moutai Co on September 14, 2024 and sell it today you would lose (19,670) from holding Kweichow Moutai Co or give up 11.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Piotech Inc A vs. Kweichow Moutai Co
Performance |
Timeline |
Piotech Inc A |
Kweichow Moutai |
Piotech and Kweichow Moutai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Piotech and Kweichow Moutai
The main advantage of trading using opposite Piotech and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech 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.Piotech vs. Wuhan Hvsen Biotechnology | Piotech vs. Dongfeng Automobile Co | Piotech vs. Shanghai Rendu Biotechnology | Piotech vs. Anhui Deli Household |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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