Correlation Between Kweichow Moutai and Xiandai Investment
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By analyzing existing cross correlation between Kweichow Moutai Co and Xiandai Investment Co, you can compare the effects of market volatilities on Kweichow Moutai and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Xiandai Investment.
Diversification Opportunities for Kweichow Moutai and Xiandai Investment
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Xiandai is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Xiandai Investment go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Xiandai Investment
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Xiandai Investment. In addition to that, Kweichow Moutai is 1.02 times more volatile than Xiandai Investment Co. It trades about -0.01 of its total potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.01 per unit of volatility. If you would invest 420.00 in Xiandai Investment Co on December 4, 2024 and sell it today you would lose (2.00) from holding Xiandai Investment Co or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Xiandai Investment Co
Performance |
| Timeline |
| Kweichow Moutai |
| Xiandai Investment |
Kweichow Moutai and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Xiandai Investment
The main advantage of trading using opposite Kweichow Moutai and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Kweichow Moutai vs. CareRay Digital Medical | Kweichow Moutai vs. Eyebright Medical Technology | Kweichow Moutai vs. Double Medical Technology | Kweichow Moutai vs. Kontour Medical Technology |
| Xiandai Investment vs. Bank of Suzhou | Xiandai Investment vs. Ningbo Tech Bank Co | Xiandai Investment vs. Shenzhen Bioeasy Biotechnology | Xiandai Investment vs. China Everbright Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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