Correlation Between Xian International and Kweichow Moutai
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By analyzing existing cross correlation between Xian International Medical and Kweichow Moutai Co, you can compare the effects of market volatilities on Xian International 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 Xian International with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Kweichow Moutai.
Diversification Opportunities for Xian International and Kweichow Moutai
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xian and Kweichow is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Xian International 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 Xian International Medical 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 Xian International i.e., Xian International and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Xian International and Kweichow Moutai
Assuming the 90 days trading horizon Xian International Medical is expected to generate 2.57 times more return on investment than Kweichow Moutai. However, Xian International is 2.57 times more volatile than Kweichow Moutai Co. It trades about 0.04 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.1 per unit of risk. If you would invest 559.00 in Xian International Medical on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Xian International Medical or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. Kweichow Moutai Co
Performance |
| Timeline |
| Xian International |
| Kweichow Moutai |
Xian International and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Kweichow Moutai
The main advantage of trading using opposite Xian International and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International 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.| Xian International vs. China Petroleum Chemical | Xian International vs. PetroChina Co Ltd | Xian International vs. China State Construction | Xian International vs. China Railway Group |
| Kweichow Moutai vs. Huafa Industrial Co | Kweichow Moutai vs. Xinjiang Baodi Mining | Kweichow Moutai vs. Guangzhou Haozhi Industrial | Kweichow Moutai vs. Hainan Mining 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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