Correlation Between Kweichow Moutai and Hengli Industrial
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By analyzing existing cross correlation between Kweichow Moutai Co and Hengli Industrial Development, you can compare the effects of market volatilities on Kweichow Moutai and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Hengli Industrial.
Diversification Opportunities for Kweichow Moutai and Hengli Industrial
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kweichow and Hengli is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Hengli Industrial go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Hengli Industrial
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Hengli Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.47 times less risky than Hengli Industrial. The stock trades about -0.06 of its potential returns per unit of risk. The Hengli Industrial Development is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 151.00 in Hengli Industrial Development on September 13, 2024 and sell it today you would earn a total of 82.00 from holding Hengli Industrial Development or generate 54.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Hengli Industrial Development
Performance |
| Timeline |
| Kweichow Moutai |
| Hengli Industrial |
Kweichow Moutai and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Hengli Industrial
The main advantage of trading using opposite Kweichow Moutai and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. China Sports Industry | Kweichow Moutai vs. Shuhua Sports Co | Kweichow Moutai vs. Jiangsu Jinling Sports |
| Hengli Industrial vs. BeiGene | Hengli Industrial vs. Kweichow Moutai Co | Hengli Industrial vs. Beijing Roborock Technology | Hengli Industrial vs. G bits Network 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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