Correlation Between Kweichow Moutai and Kuang Chi
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By analyzing existing cross correlation between Kweichow Moutai Co and Kuang Chi Technologies, you can compare the effects of market volatilities on Kweichow Moutai and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Kuang Chi.
Diversification Opportunities for Kweichow Moutai and Kuang Chi
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Kuang is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Kuang Chi go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Kuang Chi
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.91 times less risky than Kuang Chi. The stock trades about -0.01 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,613 in Kuang Chi Technologies on September 13, 2024 and sell it today you would earn a total of 2,530 from holding Kuang Chi Technologies or generate 156.85% 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. Kuang Chi Technologies
Performance |
| Timeline |
| Kweichow Moutai |
| Kuang Chi Technologies |
Kweichow Moutai and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Kuang Chi
The main advantage of trading using opposite Kweichow Moutai and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. China Sports Industry | Kweichow Moutai vs. Shuhua Sports Co | Kweichow Moutai vs. Jiangsu Jinling Sports |
| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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