Correlation Between East Money and Kweichow Moutai
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By analyzing existing cross correlation between East Money Information and Kweichow Moutai Co, you can compare the effects of market volatilities on East Money 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 East Money with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Money and Kweichow Moutai.
Diversification Opportunities for East Money and Kweichow Moutai
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between East and Kweichow is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding East Money Information and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and East Money 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 East Money Information 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 East Money i.e., East Money and Kweichow Moutai go up and down completely randomly.
Pair Corralation between East Money and Kweichow Moutai
Assuming the 90 days trading horizon East Money Information is expected to generate 3.38 times more return on investment than Kweichow Moutai. However, East Money is 3.38 times more volatile than Kweichow Moutai Co. It trades about 0.11 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.1 per unit of risk. If you would invest 2,266 in East Money Information on August 29, 2024 and sell it today you would earn a total of 248.00 from holding East Money Information or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Money Information vs. Kweichow Moutai Co
Performance |
| Timeline |
| East Money Information |
| Kweichow Moutai |
East Money and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Money and Kweichow Moutai
The main advantage of trading using opposite East Money and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Money 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.| East Money vs. Kweichow Moutai Co | East Money vs. Contemporary Amperex Technology | East Money vs. G bits Network Technology | East Money vs. BYD Co Ltd |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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