Correlation Between Kweichow Moutai and Jointo Energy
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By analyzing existing cross correlation between Kweichow Moutai Co and Jointo Energy Investment, you can compare the effects of market volatilities on Kweichow Moutai and Jointo Energy 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 Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Jointo Energy.
Diversification Opportunities for Kweichow Moutai and Jointo Energy
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kweichow and Jointo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Jointo Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jointo Energy Investment 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 Jointo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jointo Energy Investment has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Jointo Energy go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Jointo Energy
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Jointo Energy. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.55 times less risky than Jointo Energy. The stock trades about -0.01 of its potential returns per unit of risk. The Jointo Energy Investment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 529.00 in Jointo Energy Investment on September 2, 2024 and sell it today you would lose (16.00) from holding Jointo Energy Investment or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Jointo Energy Investment
Performance |
| Timeline |
| Kweichow Moutai |
| Jointo Energy Investment |
Kweichow Moutai and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Jointo Energy
The main advantage of trading using opposite Kweichow Moutai and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Jointo Energy 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 Jointo Energy will offset losses from the drop in Jointo Energy's long position.| Kweichow Moutai vs. Caihong Display Devices | Kweichow Moutai vs. Ningxia Building Materials | Kweichow Moutai vs. Guangzhou Tinci Materials | Kweichow Moutai vs. Cultural Investment Holdings |
| Jointo Energy vs. Chengdu Kanghua Biological | Jointo Energy vs. Beijing Wantai Biological | Jointo Energy vs. Suzhou Novoprotein Scientific | Jointo Energy vs. Aluminum Corp of |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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