Correlation Between Bingshan Refrigeration and Kweichow Moutai
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By analyzing existing cross correlation between Bingshan Refrigeration and and Kweichow Moutai Co, you can compare the effects of market volatilities on Bingshan Refrigeration 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 Bingshan Refrigeration with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bingshan Refrigeration and Kweichow Moutai.
Diversification Opportunities for Bingshan Refrigeration and Kweichow Moutai
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bingshan and Kweichow is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bingshan Refrigeration and and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Bingshan Refrigeration 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 Bingshan Refrigeration and 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 Bingshan Refrigeration i.e., Bingshan Refrigeration and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Bingshan Refrigeration and Kweichow Moutai
Assuming the 90 days trading horizon Bingshan Refrigeration and is expected to generate 0.92 times more return on investment than Kweichow Moutai. However, Bingshan Refrigeration and is 1.09 times less risky than Kweichow Moutai. It trades about 0.03 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 159.00 in Bingshan Refrigeration and on September 14, 2024 and sell it today you would earn a total of 27.00 from holding Bingshan Refrigeration and or generate 16.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bingshan Refrigeration and vs. Kweichow Moutai Co
Performance |
| Timeline |
| Bingshan Refrigeration |
| Kweichow Moutai |
Bingshan Refrigeration and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bingshan Refrigeration and Kweichow Moutai
The main advantage of trading using opposite Bingshan Refrigeration and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bingshan Refrigeration 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.| Bingshan Refrigeration vs. Industrial and Commercial | Bingshan Refrigeration vs. Kweichow Moutai Co | Bingshan Refrigeration vs. Agricultural Bank of | Bingshan Refrigeration vs. China Mobile Limited |
| Kweichow Moutai vs. China Life Insurance | Kweichow Moutai vs. Cinda Securities Co | Kweichow Moutai vs. Piotech Inc A | Kweichow Moutai vs. Dongxing Sec 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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