Correlation Between Elite Color and Kweichow Moutai
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By analyzing existing cross correlation between Elite Color Environmental and Kweichow Moutai Co, you can compare the effects of market volatilities on Elite Color 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 Elite Color with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Kweichow Moutai.
Diversification Opportunities for Elite Color and Kweichow Moutai
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Elite and Kweichow is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Elite Color 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 Elite Color Environmental 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 Elite Color i.e., Elite Color and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Elite Color and Kweichow Moutai
Assuming the 90 days trading horizon Elite Color Environmental is expected to generate 1.07 times more return on investment than Kweichow Moutai. However, Elite Color is 1.07 times more volatile than Kweichow Moutai Co. It trades about 0.21 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about 0.0 per unit of risk. If you would invest 540.00 in Elite Color Environmental on August 27, 2024 and sell it today you would earn a total of 122.00 from holding Elite Color Environmental or generate 22.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elite Color Environmental vs. Kweichow Moutai Co
Performance |
| Timeline |
| Elite Color Environmental |
| Kweichow Moutai |
Elite Color and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Kweichow Moutai
The main advantage of trading using opposite Elite Color and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color 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.| Elite Color vs. Zijin Mining Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Shandong Gold Mining | Elite Color vs. Rongsheng Petrochemical Co |
| Kweichow Moutai vs. Xiangyang Automobile Bearing | Kweichow Moutai vs. Northking Information Technology | Kweichow Moutai vs. Niutech Environment Technology | Kweichow Moutai vs. Western Superconducting Tech |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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