Correlation Between Kweichow Moutai and Xian International
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By analyzing existing cross correlation between Kweichow Moutai Co and Xian International Medical, you can compare the effects of market volatilities on Kweichow Moutai and Xian International 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 Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Xian International.
Diversification Opportunities for Kweichow Moutai and Xian International
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Xian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International 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 Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Xian International go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Xian International
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Xian International. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.47 times less risky than Xian International. The stock trades about -0.03 of its potential returns per unit of risk. The Xian International Medical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 561.00 in Xian International Medical on August 25, 2024 and sell it today you would earn a total of 6.00 from holding Xian International Medical or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Xian International Medical
Performance |
| Timeline |
| Kweichow Moutai |
| Xian International |
Kweichow Moutai and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Xian International
The main advantage of trading using opposite Kweichow Moutai and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Kweichow Moutai vs. Duzhe Publishing Media | Kweichow Moutai vs. Southern PublishingMedia Co | Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. Shandong Publishing Media |
| Xian International vs. Kweichow Moutai Co | Xian International vs. Contemporary Amperex Technology | Xian International vs. G bits Network Technology | Xian International vs. Beijing Roborock 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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