Correlation Between Weihai Honglin and Kweichow Moutai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weihai Honglin Electronic and Kweichow Moutai Co, you can compare the effects of market volatilities on Weihai Honglin 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 Weihai Honglin with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Kweichow Moutai.
Diversification Opportunities for Weihai Honglin and Kweichow Moutai
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Weihai and Kweichow is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Weihai Honglin 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 Weihai Honglin Electronic 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 Weihai Honglin i.e., Weihai Honglin and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Weihai Honglin and Kweichow Moutai
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to under-perform the Kweichow Moutai. In addition to that, Weihai Honglin is 1.33 times more volatile than Kweichow Moutai Co. It trades about -0.18 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.1 per unit of volatility. If you would invest 156,500 in Kweichow Moutai Co on August 29, 2024 and sell it today you would lose (5,600) from holding Kweichow Moutai Co or give up 3.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Kweichow Moutai Co
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Kweichow Moutai |
Weihai Honglin and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Kweichow Moutai
The main advantage of trading using opposite Weihai Honglin and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin 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.| Weihai Honglin vs. PetroChina Co Ltd | Weihai Honglin vs. China State Construction | Weihai Honglin vs. China Mobile Limited | Weihai Honglin vs. Industrial and Commercial |
| Kweichow Moutai vs. PetroChina Co Ltd | Kweichow Moutai vs. China Mobile Limited | Kweichow Moutai vs. Ping An Insurance | Kweichow Moutai vs. China Petroleum Chemical |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |