Correlation Between Henan Shuanghui and Kweichow Moutai
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By analyzing existing cross correlation between Henan Shuanghui Investment and Kweichow Moutai Co, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Kweichow Moutai.
Diversification Opportunities for Henan Shuanghui and Kweichow Moutai
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Henan and Kweichow is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Kweichow Moutai
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 1.52 times more return on investment than Kweichow Moutai. However, Henan Shuanghui is 1.52 times more volatile than Kweichow Moutai Co. It trades about 0.12 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.02 per unit of risk. If you would invest 2,567 in Henan Shuanghui Investment on November 5, 2024 and sell it today you would earn a total of 69.00 from holding Henan Shuanghui Investment or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Kweichow Moutai Co
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Kweichow Moutai |
Henan Shuanghui and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Kweichow Moutai
The main advantage of trading using opposite Henan Shuanghui and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. Shenzhen Noposion Agrochemicals | Henan Shuanghui vs. Ningxia Younglight Chemicals | Henan Shuanghui vs. Ningbo Kangqiang Electronics | Henan Shuanghui vs. Techshine Electronics Co |
| Kweichow Moutai vs. Shanghai Rongtai Health | Kweichow Moutai vs. Heren Health Co | Kweichow Moutai vs. De Rucci Healthy | Kweichow Moutai vs. Shandong Sanyuan Biotechnology |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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