Correlation Between Yankershop Food and Kweichow Moutai
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By analyzing existing cross correlation between Yankershop Food Co and Kweichow Moutai Co, you can compare the effects of market volatilities on Yankershop Food 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 Yankershop Food with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yankershop Food and Kweichow Moutai.
Diversification Opportunities for Yankershop Food and Kweichow Moutai
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yankershop and Kweichow is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Yankershop Food Co and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Yankershop Food 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 Yankershop Food Co 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 Yankershop Food i.e., Yankershop Food and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Yankershop Food and Kweichow Moutai
Assuming the 90 days trading horizon Yankershop Food Co is expected to under-perform the Kweichow Moutai. In addition to that, Yankershop Food is 1.7 times more volatile than Kweichow Moutai Co. It trades about -0.07 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.04 per unit of volatility. If you would invest 156,750 in Kweichow Moutai Co on August 24, 2024 and sell it today you would lose (2,237) from holding Kweichow Moutai Co or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yankershop Food Co vs. Kweichow Moutai Co
Performance |
| Timeline |
| Yankershop Food |
| Kweichow Moutai |
Yankershop Food and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yankershop Food and Kweichow Moutai
The main advantage of trading using opposite Yankershop Food and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yankershop Food 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.| Yankershop Food vs. Nanjing Putian Telecommunications | Yankershop Food vs. Shenyang Huitian Thermal | Yankershop Food vs. Hubei Geoway Investment | Yankershop Food vs. Datang Telecom Technology |
| Kweichow Moutai vs. Ligao Foods CoLtd | Kweichow Moutai vs. Elite Color Environmental | Kweichow Moutai vs. Namchow Food Group | Kweichow Moutai vs. Yankershop Food Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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