Correlation Between Kweichow Moutai and Jiangxi Sunshine
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By analyzing existing cross correlation between Kweichow Moutai Co and Jiangxi Sunshine Dairy, you can compare the effects of market volatilities on Kweichow Moutai and Jiangxi Sunshine 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 Jiangxi Sunshine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Jiangxi Sunshine.
Diversification Opportunities for Kweichow Moutai and Jiangxi Sunshine
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Jiangxi is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Jiangxi Sunshine Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Sunshine Dairy 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 Jiangxi Sunshine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Sunshine Dairy has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Jiangxi Sunshine go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Jiangxi Sunshine
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Jiangxi Sunshine. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.49 times less risky than Jiangxi Sunshine. The stock trades about 0.0 of its potential returns per unit of risk. The Jiangxi Sunshine Dairy is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,370 in Jiangxi Sunshine Dairy on September 14, 2024 and sell it today you would earn a total of 61.00 from holding Jiangxi Sunshine Dairy or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Jiangxi Sunshine Dairy
Performance |
| Timeline |
| Kweichow Moutai |
| Jiangxi Sunshine Dairy |
Kweichow Moutai and Jiangxi Sunshine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Jiangxi Sunshine
The main advantage of trading using opposite Kweichow Moutai and Jiangxi Sunshine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Jiangxi Sunshine 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 Jiangxi Sunshine will offset losses from the drop in Jiangxi Sunshine's long position.| Kweichow Moutai vs. China Life Insurance | Kweichow Moutai vs. Cinda Securities Co | Kweichow Moutai vs. Piotech Inc A | Kweichow Moutai vs. Dongxing Sec Co |
| Jiangxi Sunshine vs. Sinosteel Engineering and | Jiangxi Sunshine vs. Shenwu Energy Saving | Jiangxi Sunshine vs. Ping An Insurance | Jiangxi Sunshine vs. Easyhome New Retail |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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