Correlation Between Jinyu Bio and Kweichow Moutai
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By analyzing existing cross correlation between Jinyu Bio Technology Co and Kweichow Moutai Co, you can compare the effects of market volatilities on Jinyu Bio 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 Jinyu Bio with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinyu Bio and Kweichow Moutai.
Diversification Opportunities for Jinyu Bio and Kweichow Moutai
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinyu and Kweichow is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jinyu Bio Technology 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 Jinyu Bio 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 Jinyu Bio Technology 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 Jinyu Bio i.e., Jinyu Bio and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Jinyu Bio and Kweichow Moutai
Assuming the 90 days trading horizon Jinyu Bio Technology Co is expected to generate 2.31 times more return on investment than Kweichow Moutai. However, Jinyu Bio is 2.31 times more volatile than Kweichow Moutai Co. It trades about 0.11 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.17 per unit of risk. If you would invest 706.00 in Jinyu Bio Technology Co on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Jinyu Bio Technology Co or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jinyu Bio Technology Co vs. Kweichow Moutai Co
Performance |
| Timeline |
| Jinyu Bio Technology |
| Kweichow Moutai |
Jinyu Bio and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinyu Bio and Kweichow Moutai
The main advantage of trading using opposite Jinyu Bio and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinyu Bio 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.| Jinyu Bio vs. Cultural Investment Holdings | Jinyu Bio vs. Gome Telecom Equipment | Jinyu Bio vs. Holitech Technology Co | Jinyu Bio vs. Zotye Automobile Co |
| Kweichow Moutai vs. Luyin Investment Group | Kweichow Moutai vs. Sichuan Fulin Transportation | Kweichow Moutai vs. Zhongshan Broad Ocean Motor | Kweichow Moutai vs. Southchip Semiconductor Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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