Correlation Between Kweichow Moutai and Huatian Hotel
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By analyzing existing cross correlation between Kweichow Moutai Co and Huatian Hotel Group, you can compare the effects of market volatilities on Kweichow Moutai and Huatian Hotel 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 Kweichow Moutai with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Huatian Hotel.
Diversification Opportunities for Kweichow Moutai and Huatian Hotel
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kweichow and Huatian is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Huatian Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatian Hotel Group and Kweichow Moutai 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 Kweichow Moutai Co are associated (or correlated) with Huatian Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatian Hotel Group has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Huatian Hotel go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Huatian Hotel
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Huatian Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.2 times less risky than Huatian Hotel. The stock trades about -0.09 of its potential returns per unit of risk. The Huatian Hotel Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 309.00 in Huatian Hotel Group on October 15, 2024 and sell it today you would lose (8.00) from holding Huatian Hotel Group or give up 2.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Huatian Hotel Group
Performance |
| Timeline |
| Kweichow Moutai |
| Huatian Hotel Group |
Kweichow Moutai and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Huatian Hotel
The main advantage of trading using opposite Kweichow Moutai and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Huatian Hotel 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 Huatian Hotel will offset losses from the drop in Huatian Hotel's long position.| Kweichow Moutai vs. Beijing Kingsoft Office | Kweichow Moutai vs. Guangzhou Haige Communications | Kweichow Moutai vs. Dynagreen Environmental Protection | Kweichow Moutai vs. Songz Automobile Air |
| Huatian Hotel vs. CIMC Vehicles Co | Huatian Hotel vs. Sinomach Automobile Co | Huatian Hotel vs. Guotai Epoint Software | Huatian Hotel vs. GuoChuang Software Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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