Correlation Between Jiangsu Jinling and Kweichow Moutai
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Kweichow Moutai Co, you can compare the effects of market volatilities on Jiangsu Jinling 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 Jiangsu Jinling with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Kweichow Moutai.
Diversification Opportunities for Jiangsu Jinling and Kweichow Moutai
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Kweichow is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Jiangsu Jinling 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 Jiangsu Jinling Sports 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 Jiangsu Jinling i.e., Jiangsu Jinling and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Kweichow Moutai
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Kweichow Moutai. In addition to that, Jiangsu Jinling is 1.93 times more volatile than Kweichow Moutai Co. It trades about -0.01 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.01 per unit of volatility. If you would invest 172,264 in Kweichow Moutai Co on September 13, 2024 and sell it today you would lose (18,704) from holding Kweichow Moutai Co or give up 10.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Kweichow Moutai Co
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Kweichow Moutai |
Jiangsu Jinling and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Kweichow Moutai
The main advantage of trading using opposite Jiangsu Jinling and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling 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.| Jiangsu Jinling vs. Lutian Machinery Co | Jiangsu Jinling vs. China Longyuan Power | Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. Bank of China |
| Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. China Sports Industry | Kweichow Moutai vs. Shuhua Sports Co | Kweichow Moutai vs. Jiangsu Jinling Sports |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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