Correlation Between Guangzhou Zhujiang and Kweichow Moutai
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Kweichow Moutai Co, you can compare the effects of market volatilities on Guangzhou Zhujiang 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 Guangzhou Zhujiang with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Kweichow Moutai.
Diversification Opportunities for Guangzhou Zhujiang and Kweichow Moutai
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Kweichow is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang 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 Guangzhou Zhujiang 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 Guangzhou Zhujiang 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 Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Kweichow Moutai
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to under-perform the Kweichow Moutai. In addition to that, Guangzhou Zhujiang is 1.03 times more volatile than Kweichow Moutai Co. It trades about -0.35 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 152,500 in Kweichow Moutai Co on October 29, 2024 and sell it today you would lose (9,001) from holding Kweichow Moutai Co or give up 5.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Kweichow Moutai Co
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Kweichow Moutai |
Guangzhou Zhujiang and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Kweichow Moutai
The main advantage of trading using opposite Guangzhou Zhujiang and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang 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.| Guangzhou Zhujiang vs. Guilin Seamild Foods | Guangzhou Zhujiang vs. Tieling Newcity Investment | Guangzhou Zhujiang vs. Great Sun Foods Co | Guangzhou Zhujiang vs. Qingdao Foods Co |
| Kweichow Moutai vs. Do Fluoride Chemicals Co | Kweichow Moutai vs. Porton Fine Chemicals | Kweichow Moutai vs. Guangzhou Zhujiang Brewery | Kweichow Moutai vs. Guangdong Wens Foodstuff |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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