Correlation Between Kweichow Moutai and Beijing Bewinner
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By analyzing existing cross correlation between Kweichow Moutai Co and Beijing Bewinner Communications, you can compare the effects of market volatilities on Kweichow Moutai and Beijing Bewinner 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 Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Beijing Bewinner.
Diversification Opportunities for Kweichow Moutai and Beijing Bewinner
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kweichow and Beijing is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com 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 Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Beijing Bewinner
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.23 times more return on investment than Beijing Bewinner. However, Kweichow Moutai Co is 4.35 times less risky than Beijing Bewinner. It trades about -0.26 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about -0.4 per unit of risk. If you would invest 151,900 in Kweichow Moutai Co on October 14, 2024 and sell it today you would lose (8,300) from holding Kweichow Moutai Co or give up 5.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Kweichow Moutai |
| Beijing Bewinner Com |
Kweichow Moutai and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Beijing Bewinner
The main advantage of trading using opposite Kweichow Moutai and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Beijing Bewinner 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 Beijing Bewinner will offset losses from the drop in Beijing Bewinner's long position.| Kweichow Moutai vs. Aurora Optoelectronics Co | Kweichow Moutai vs. Jiangsu Yanghe Brewery | Kweichow Moutai vs. Epoxy Base Electronic | Kweichow Moutai vs. Jinlong Machinery Electronic |
| Beijing Bewinner vs. Kweichow Moutai Co | Beijing Bewinner vs. Shenzhen Mindray Bio Medical | Beijing Bewinner vs. Jiangsu Pacific Quartz | Beijing Bewinner 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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