Correlation Between China Asset and Kweichow Moutai
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By analyzing existing cross correlation between China Asset Management and Kweichow Moutai Co, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Kweichow Moutai.
Diversification Opportunities for China Asset and Kweichow Moutai
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Kweichow is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Kweichow Moutai go up and down completely randomly.
Pair Corralation between China Asset and Kweichow Moutai
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.88 times more return on investment than Kweichow Moutai. However, China Asset Management is 1.13 times less risky than Kweichow Moutai. It trades about 0.39 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.11 per unit of risk. If you would invest 308.00 in China Asset Management on November 6, 2024 and sell it today you would earn a total of 88.00 from holding China Asset Management or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Kweichow Moutai Co
Performance |
| Timeline |
| China Asset Management |
| Kweichow Moutai |
China Asset and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Kweichow Moutai
The main advantage of trading using opposite China Asset and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Tinavi Medical Technologies | China Asset vs. Double Medical Technology | China Asset vs. Cicc Fund Management | China Asset vs. Eyebright Medical Technology |
| Kweichow Moutai vs. Juneyao Airlines | Kweichow Moutai vs. DO Home Collection | Kweichow Moutai vs. Zhangjiagang Elegant Home | Kweichow Moutai vs. Hongrun Construction Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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