Correlation Between Kweichow Moutai and GRG Banking
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By analyzing existing cross correlation between Kweichow Moutai Co and GRG Banking Equipment, you can compare the effects of market volatilities on Kweichow Moutai and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and GRG Banking.
Diversification Opportunities for Kweichow Moutai and GRG Banking
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and GRG is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and GRG Banking go up and down completely randomly.
Pair Corralation between Kweichow Moutai and GRG Banking
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the GRG Banking. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.36 times less risky than GRG Banking. The stock trades about -0.03 of its potential returns per unit of risk. The GRG Banking Equipment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,225 in GRG Banking Equipment on August 29, 2024 and sell it today you would lose (30.00) from holding GRG Banking Equipment or give up 2.45% 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. GRG Banking Equipment
Performance |
| Timeline |
| Kweichow Moutai |
| GRG Banking Equipment |
Kweichow Moutai and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and GRG Banking
The main advantage of trading using opposite Kweichow Moutai and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Kweichow Moutai vs. PetroChina Co Ltd | Kweichow Moutai vs. China Mobile Limited | Kweichow Moutai vs. Ping An Insurance | Kweichow Moutai vs. China Petroleum Chemical |
| GRG Banking vs. China State Construction | GRG Banking vs. Huafa Industrial Co | GRG Banking vs. China International Capital | GRG Banking vs. Kweichow Moutai Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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