Correlation Between Wintao Communications and Kweichow Moutai
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By analyzing existing cross correlation between Wintao Communications Co and Kweichow Moutai Co, you can compare the effects of market volatilities on Wintao Communications 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 Wintao Communications with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Kweichow Moutai.
Diversification Opportunities for Wintao Communications and Kweichow Moutai
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wintao and Kweichow is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications 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 Wintao Communications 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 Wintao Communications 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 Wintao Communications i.e., Wintao Communications and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Wintao Communications and Kweichow Moutai
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 3.22 times more return on investment than Kweichow Moutai. However, Wintao Communications is 3.22 times more volatile than Kweichow Moutai Co. It trades about 0.12 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.14 per unit of risk. If you would invest 2,410 in Wintao Communications Co on September 13, 2024 and sell it today you would earn a total of 152.00 from holding Wintao Communications Co or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintao Communications Co vs. Kweichow Moutai Co
Performance |
| Timeline |
| Wintao Communications |
| Kweichow Moutai |
Wintao Communications and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Kweichow Moutai
The main advantage of trading using opposite Wintao Communications and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications 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.| Wintao Communications vs. Industrial and Commercial | Wintao Communications vs. China Construction Bank | Wintao Communications vs. Agricultural Bank of | Wintao Communications 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 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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