Correlation Between China Petroleum and Kweichow Moutai
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By analyzing existing cross correlation between China Petroleum Chemical and Kweichow Moutai Co, you can compare the effects of market volatilities on China Petroleum 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 Petroleum with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Kweichow Moutai.
Diversification Opportunities for China Petroleum and Kweichow Moutai
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Kweichow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical 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 Petroleum 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 Petroleum Chemical 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 Petroleum i.e., China Petroleum and Kweichow Moutai go up and down completely randomly.
Pair Corralation between China Petroleum and Kweichow Moutai
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.81 times more return on investment than Kweichow Moutai. However, China Petroleum Chemical is 1.24 times less risky than Kweichow Moutai. It trades about 0.0 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.02 per unit of risk. If you would invest 645.00 in China Petroleum Chemical on August 29, 2024 and sell it today you would lose (7.00) from holding China Petroleum Chemical or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Kweichow Moutai Co
Performance |
| Timeline |
| China Petroleum Chemical |
| Kweichow Moutai |
China Petroleum and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Kweichow Moutai
The main advantage of trading using opposite China Petroleum and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum 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 Petroleum vs. Anhui Huilong Agricultural | China Petroleum vs. Chinese Universe Publishing | China Petroleum vs. Shanghai Action Education | China Petroleum vs. Time Publishing and |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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