Correlation Between Kweichow Moutai and Qiming Information
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By analyzing existing cross correlation between Kweichow Moutai Co and Qiming Information Technology, you can compare the effects of market volatilities on Kweichow Moutai and Qiming Information 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 Qiming Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Qiming Information.
Diversification Opportunities for Kweichow Moutai and Qiming Information
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Qiming is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Qiming Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiming Information 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 Qiming Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiming Information has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Qiming Information go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Qiming Information
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.35 times more return on investment than Qiming Information. However, Kweichow Moutai Co is 2.85 times less risky than Qiming Information. It trades about -0.27 of its potential returns per unit of risk. Qiming Information Technology is currently generating about -0.13 per unit of risk. If you would invest 152,897 in Kweichow Moutai Co on October 28, 2024 and sell it today you would lose (9,297) from holding Kweichow Moutai Co or give up 6.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Qiming Information Technology
Performance |
| Timeline |
| Kweichow Moutai |
| Qiming Information |
Kweichow Moutai and Qiming Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Qiming Information
The main advantage of trading using opposite Kweichow Moutai and Qiming Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Qiming Information 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 Qiming Information will offset losses from the drop in Qiming Information's long position.| Kweichow Moutai vs. Do Fluoride Chemicals Co | Kweichow Moutai vs. Porton Fine Chemicals | Kweichow Moutai vs. Guangzhou Zhujiang Brewery | Kweichow Moutai vs. Guangdong Wens Foodstuff |
| Qiming Information vs. Bank of China | Qiming Information vs. Kweichow Moutai Co | Qiming Information vs. PetroChina Co Ltd | Qiming Information vs. Bank of Communications |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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