Correlation Between Kweichow Moutai and DO Home
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By analyzing existing cross correlation between Kweichow Moutai Co and DO Home Collection, you can compare the effects of market volatilities on Kweichow Moutai and DO Home 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 DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and DO Home.
Diversification Opportunities for Kweichow Moutai and DO Home
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and 002798 is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection 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 DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and DO Home go up and down completely randomly.
Pair Corralation between Kweichow Moutai and DO Home
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.28 times more return on investment than DO Home. However, Kweichow Moutai Co is 3.61 times less risky than DO Home. It trades about -0.14 of its potential returns per unit of risk. DO Home Collection is currently generating about -0.05 per unit of risk. If you would invest 147,500 in Kweichow Moutai Co on November 4, 2024 and sell it today you would lose (4,001) from holding Kweichow Moutai Co or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. DO Home Collection
Performance |
| Timeline |
| Kweichow Moutai |
| DO Home Collection |
Kweichow Moutai and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and DO Home
The main advantage of trading using opposite Kweichow Moutai and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Kweichow Moutai vs. Shanghai Rongtai Health | Kweichow Moutai vs. Heren Health Co | Kweichow Moutai vs. De Rucci Healthy | Kweichow Moutai vs. Shandong Sanyuan Biotechnology |
| DO Home vs. Orinko Advanced Plastics | DO Home vs. Shandong Kuntai New | DO Home vs. Masterwork Machinery | DO Home vs. Linzhou Heavy Machinery |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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