Correlation Between Kweichow Moutai and Xiamen Wanli
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By analyzing existing cross correlation between Kweichow Moutai Co and Xiamen Wanli Stone, you can compare the effects of market volatilities on Kweichow Moutai and Xiamen Wanli 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 Xiamen Wanli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Xiamen Wanli.
Diversification Opportunities for Kweichow Moutai and Xiamen Wanli
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kweichow and Xiamen is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Xiamen Wanli Stone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Wanli Stone 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 Xiamen Wanli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Wanli Stone has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Xiamen Wanli go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Xiamen Wanli
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Xiamen Wanli. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.71 times less risky than Xiamen Wanli. The stock trades about -0.01 of its potential returns per unit of risk. The Xiamen Wanli Stone is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,884 in Xiamen Wanli Stone on January 25, 2025 and sell it today you would lose (283.00) from holding Xiamen Wanli Stone or give up 9.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Xiamen Wanli Stone
Performance |
| Timeline |
| Kweichow Moutai |
| Xiamen Wanli Stone |
Kweichow Moutai and Xiamen Wanli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Xiamen Wanli
The main advantage of trading using opposite Kweichow Moutai and Xiamen Wanli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Xiamen Wanli 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 Xiamen Wanli will offset losses from the drop in Xiamen Wanli's long position.| Kweichow Moutai vs. Iat Automobile Technology | Kweichow Moutai vs. Western Superconducting Tech | Kweichow Moutai vs. Haima Automobile Group | Kweichow Moutai vs. Hubei Huaqiang High Tech |
| Xiamen Wanli vs. Guangdong Wens Foodstuff | Xiamen Wanli vs. Henan Provincial Communications | Xiamen Wanli vs. Muyuan Foodstuff Co | Xiamen Wanli vs. State Grid InformationCommunication |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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