Correlation Between Jiangsu Yanghe and Kweichow Moutai
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Kweichow Moutai Co, you can compare the effects of market volatilities on Jiangsu Yanghe 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 Jiangsu Yanghe with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Kweichow Moutai.
Diversification Opportunities for Jiangsu Yanghe and Kweichow Moutai
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Kweichow is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery 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 Jiangsu Yanghe i.e., Jiangsu Yanghe and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Kweichow Moutai
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to under-perform the Kweichow Moutai. In addition to that, Jiangsu Yanghe is 1.04 times more volatile than Kweichow Moutai Co. It trades about -0.31 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.26 per unit of volatility. If you would invest 151,900 in Kweichow Moutai Co on October 14, 2024 and sell it today you would lose (8,300) from holding Kweichow Moutai Co or give up 5.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Kweichow Moutai Co
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Kweichow Moutai |
Jiangsu Yanghe and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Kweichow Moutai
The main advantage of trading using opposite Jiangsu Yanghe and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe 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.| Jiangsu Yanghe vs. Ningbo Tech Bank Co | Jiangsu Yanghe vs. Duzhe Publishing Media | Jiangsu Yanghe vs. Chengdu B ray Media | Jiangsu Yanghe vs. JiShi Media Co |
| Kweichow Moutai vs. Aurora Optoelectronics Co | Kweichow Moutai vs. Jiangsu Yanghe Brewery | Kweichow Moutai vs. Epoxy Base Electronic | Kweichow Moutai vs. Jinlong Machinery Electronic |
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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