Correlation Between Yoantion Industrial and Kweichow Moutai
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By analyzing existing cross correlation between Yoantion Industrial IncLtd and Kweichow Moutai Co, you can compare the effects of market volatilities on Yoantion Industrial 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 Yoantion Industrial with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yoantion Industrial and Kweichow Moutai.
Diversification Opportunities for Yoantion Industrial and Kweichow Moutai
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yoantion and Kweichow is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Yoantion Industrial IncLtd and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Yoantion Industrial 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 Yoantion Industrial IncLtd 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 Yoantion Industrial i.e., Yoantion Industrial and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Yoantion Industrial and Kweichow Moutai
Assuming the 90 days trading horizon Yoantion Industrial IncLtd is expected to generate 2.24 times more return on investment than Kweichow Moutai. However, Yoantion Industrial is 2.24 times more volatile than Kweichow Moutai Co. It trades about 0.02 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.01 per unit of risk. If you would invest 2,090 in Yoantion Industrial IncLtd on September 25, 2024 and sell it today you would lose (63.00) from holding Yoantion Industrial IncLtd or give up 3.01% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Yoantion Industrial IncLtd vs. Kweichow Moutai Co
Performance |
Timeline |
Yoantion Industrial |
Kweichow Moutai |
Yoantion Industrial and Kweichow Moutai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yoantion Industrial and Kweichow Moutai
The main advantage of trading using opposite Yoantion Industrial and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yoantion Industrial 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.Yoantion Industrial vs. Bank of China | Yoantion Industrial vs. Kweichow Moutai Co | Yoantion Industrial vs. PetroChina Co Ltd | Yoantion Industrial vs. Bank of Communications |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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