Correlation Between Kweichow Moutai and Gansu Huangtai
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By analyzing existing cross correlation between Kweichow Moutai Co and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Kweichow Moutai and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Gansu Huangtai.
Diversification Opportunities for Kweichow Moutai and Gansu Huangtai
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Gansu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Gansu Huangtai
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.08 times less risky than Gansu Huangtai. The stock trades about 0.0 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,733 in Gansu Huangtai Wine marketing on August 31, 2024 and sell it today you would lose (247.00) from holding Gansu Huangtai Wine marketing or give up 14.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Kweichow Moutai |
| Gansu Huangtai Wine |
Kweichow Moutai and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Gansu Huangtai
The main advantage of trading using opposite Kweichow Moutai and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Kweichow Moutai vs. Changchun Engley Automobile | Kweichow Moutai vs. Fiberhome Telecommunication Technologies | Kweichow Moutai vs. Shandong Longquan Pipeline | Kweichow Moutai vs. Western Mining Co |
| Gansu Huangtai vs. Lutian Machinery Co | Gansu Huangtai vs. PetroChina Co Ltd | Gansu Huangtai vs. Bank of China | Gansu Huangtai vs. Gansu Jiu Steel |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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