Correlation Between Kweichow Moutai and Goertek
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By analyzing existing cross correlation between Kweichow Moutai Co and Goertek, you can compare the effects of market volatilities on Kweichow Moutai and Goertek 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 Goertek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Goertek.
Diversification Opportunities for Kweichow Moutai and Goertek
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Goertek is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Goertek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goertek 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 Goertek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goertek has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Goertek go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Goertek
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Goertek. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.47 times less risky than Goertek. The stock trades about -0.02 of its potential returns per unit of risk. The Goertek is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,365 in Goertek on August 31, 2024 and sell it today you would earn a total of 119.00 from holding Goertek or generate 5.03% 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. Goertek
Performance |
| Timeline |
| Kweichow Moutai |
| Goertek |
Kweichow Moutai and Goertek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Goertek
The main advantage of trading using opposite Kweichow Moutai and Goertek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Goertek 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 Goertek will offset losses from the drop in Goertek'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 |
| Goertek vs. Sino Medical Sciences | Goertek vs. Cowealth Medical China | Goertek vs. Blue Sail Medical | Goertek vs. Guangzhou Boji Medical |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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