Correlation Between Kuangda Technology and Kweichow Moutai
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By analyzing existing cross correlation between Kuangda Technology Group and Kweichow Moutai Co, you can compare the effects of market volatilities on Kuangda Technology 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 Kuangda Technology with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Kweichow Moutai.
Diversification Opportunities for Kuangda Technology and Kweichow Moutai
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuangda and Kweichow is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Kuangda Technology 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 Kuangda Technology Group 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 Kuangda Technology i.e., Kuangda Technology and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Kuangda Technology and Kweichow Moutai
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 2.11 times more return on investment than Kweichow Moutai. However, Kuangda Technology is 2.11 times more volatile than Kweichow Moutai Co. It trades about -0.01 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.18 per unit of risk. If you would invest 494.00 in Kuangda Technology Group on November 3, 2024 and sell it today you would lose (4.00) from holding Kuangda Technology Group or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Kweichow Moutai Co
Performance |
| Timeline |
| Kuangda Technology |
| Kweichow Moutai |
Kuangda Technology and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Kweichow Moutai
The main advantage of trading using opposite Kuangda Technology and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology 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.| Kuangda Technology vs. StarPower Semiconductor | Kuangda Technology vs. New Hope Dairy | Kuangda Technology vs. Suzhou Oriental Semiconductor | Kuangda Technology vs. Qingdao Foods Co |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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