Correlation Between Greattown Holdings and Kweichow Moutai
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By analyzing existing cross correlation between Greattown Holdings Ltd and Kweichow Moutai Co, you can compare the effects of market volatilities on Greattown Holdings 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 Greattown Holdings with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greattown Holdings and Kweichow Moutai.
Diversification Opportunities for Greattown Holdings and Kweichow Moutai
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Greattown and Kweichow is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Greattown Holdings Ltd and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Greattown Holdings 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 Greattown Holdings Ltd 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 Greattown Holdings i.e., Greattown Holdings and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Greattown Holdings and Kweichow Moutai
Assuming the 90 days trading horizon Greattown Holdings Ltd is expected to generate 1.58 times more return on investment than Kweichow Moutai. However, Greattown Holdings is 1.58 times more volatile than Kweichow Moutai Co. 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 377.00 in Greattown Holdings Ltd on August 31, 2024 and sell it today you would lose (3.00) from holding Greattown Holdings Ltd or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Greattown Holdings Ltd vs. Kweichow Moutai Co
Performance |
| Timeline |
| Greattown Holdings |
| Kweichow Moutai |
Greattown Holdings and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greattown Holdings and Kweichow Moutai
The main advantage of trading using opposite Greattown Holdings and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greattown Holdings 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.| Greattown Holdings vs. Kweichow Moutai Co | Greattown Holdings vs. Contemporary Amperex Technology | Greattown Holdings vs. G bits Network Technology | Greattown Holdings vs. BYD Co Ltd |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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