Correlation Between Kweichow Moutai and Yunnan Xiyi
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By analyzing existing cross correlation between Kweichow Moutai Co and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Kweichow Moutai and Yunnan Xiyi 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 Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Yunnan Xiyi.
Diversification Opportunities for Kweichow Moutai and Yunnan Xiyi
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kweichow and Yunnan is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi Industrial 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 Yunnan Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Yunnan Xiyi
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Yunnan Xiyi. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 7.43 times less risky than Yunnan Xiyi. The stock trades about -0.22 of its potential returns per unit of risk. The Yunnan Xiyi Industrial is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,055 in Yunnan Xiyi Industrial on October 20, 2024 and sell it today you would earn a total of 840.00 from holding Yunnan Xiyi Industrial or generate 40.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Kweichow Moutai |
| Yunnan Xiyi Industrial |
Kweichow Moutai and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Yunnan Xiyi
The main advantage of trading using opposite Kweichow Moutai and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Yunnan Xiyi 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 Yunnan Xiyi will offset losses from the drop in Yunnan Xiyi's long position.| Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. Haima Automobile Group | Kweichow Moutai vs. Jiangsu Xinri E Vehicle | Kweichow Moutai vs. Jiangsu Phoenix Publishing |
| Yunnan Xiyi vs. HaiXin Foods Co | Yunnan Xiyi vs. Liaoning Dingjide Petrochemical | Yunnan Xiyi vs. Jiahe Foods Industry | Yunnan Xiyi vs. Liuzhou Chemical Industry |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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