Correlation Between Zhejiang Huatong and Kweichow Moutai
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By analyzing existing cross correlation between Zhejiang Huatong Meat and Kweichow Moutai Co, you can compare the effects of market volatilities on Zhejiang Huatong 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 Zhejiang Huatong with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huatong and Kweichow Moutai.
Diversification Opportunities for Zhejiang Huatong and Kweichow Moutai
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Kweichow is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huatong Meat and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Zhejiang Huatong 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 Zhejiang Huatong Meat 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 Zhejiang Huatong i.e., Zhejiang Huatong and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Zhejiang Huatong and Kweichow Moutai
Assuming the 90 days trading horizon Zhejiang Huatong Meat is expected to generate 2.32 times more return on investment than Kweichow Moutai. However, Zhejiang Huatong is 2.32 times more volatile than Kweichow Moutai Co. It trades about 0.1 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 1,114 in Zhejiang Huatong Meat on November 6, 2024 and sell it today you would earn a total of 35.00 from holding Zhejiang Huatong Meat or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Huatong Meat vs. Kweichow Moutai Co
Performance |
| Timeline |
| Zhejiang Huatong Meat |
| Kweichow Moutai |
Zhejiang Huatong and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huatong and Kweichow Moutai
The main advantage of trading using opposite Zhejiang Huatong and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huatong 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.| Zhejiang Huatong vs. FSPG Hi Tech Co | Zhejiang Huatong vs. TianJin 712 Communication | Zhejiang Huatong vs. China Satellite Communications | Zhejiang Huatong vs. Smartgiant Technology Co |
| Kweichow Moutai vs. Juneyao Airlines | Kweichow Moutai vs. DO Home Collection | Kweichow Moutai vs. Zhangjiagang Elegant Home | Kweichow Moutai vs. Hongrun Construction Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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