Correlation Between Kweichow Moutai and Linzhou Heavy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Linzhou Heavy Machinery, you can compare the effects of market volatilities on Kweichow Moutai and Linzhou Heavy 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 Linzhou Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Linzhou Heavy.
Diversification Opportunities for Kweichow Moutai and Linzhou Heavy
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kweichow and Linzhou is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Linzhou Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linzhou Heavy Machinery 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 Linzhou Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linzhou Heavy Machinery has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Linzhou Heavy go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Linzhou Heavy
Assuming the 90 days trading horizon Kweichow Moutai is expected to generate 3.73 times less return on investment than Linzhou Heavy. But when comparing it to its historical volatility, Kweichow Moutai Co is 2.97 times less risky than Linzhou Heavy. It trades about 0.03 of its potential returns per unit of risk. Linzhou Heavy Machinery is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 393.00 in Linzhou Heavy Machinery on September 28, 2024 and sell it today you would earn a total of 7.00 from holding Linzhou Heavy Machinery or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Linzhou Heavy Machinery
Performance |
| Timeline |
| Kweichow Moutai |
| Linzhou Heavy Machinery |
Kweichow Moutai and Linzhou Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Linzhou Heavy
The main advantage of trading using opposite Kweichow Moutai and Linzhou Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Linzhou Heavy 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 Linzhou Heavy will offset losses from the drop in Linzhou Heavy's long position.| Kweichow Moutai vs. Chengtun Mining Group | Kweichow Moutai vs. Healthcare Co | Kweichow Moutai vs. Tibet Huayu Mining | Kweichow Moutai vs. Mingchen Health Co |
| Linzhou Heavy vs. Bank of China | Linzhou Heavy vs. Kweichow Moutai Co | Linzhou Heavy vs. PetroChina Co Ltd | Linzhou Heavy 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |