Correlation Between Kweichow Moutai and Bank of Suzhou
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By analyzing existing cross correlation between Kweichow Moutai Co and Bank of Suzhou, you can compare the effects of market volatilities on Kweichow Moutai and Bank of Suzhou 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 Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Bank of Suzhou.
Diversification Opportunities for Kweichow Moutai and Bank of Suzhou
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kweichow and Bank is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Bank of Suzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Suzhou 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 Bank of Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Suzhou has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Bank of Suzhou
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Bank of Suzhou. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.44 times less risky than Bank of Suzhou. The stock trades about -0.14 of its potential returns per unit of risk. The Bank of Suzhou is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 790.00 in Bank of Suzhou on November 4, 2024 and sell it today you would earn a total of 3.00 from holding Bank of Suzhou or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Bank of Suzhou
Performance |
| Timeline |
| Kweichow Moutai |
| Bank of Suzhou |
Kweichow Moutai and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Bank of Suzhou
The main advantage of trading using opposite Kweichow Moutai and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Bank of Suzhou 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 Bank of Suzhou will offset losses from the drop in Bank of Suzhou'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 |
| Bank of Suzhou vs. Agricultural Bank of | Bank of Suzhou vs. Industrial and Commercial | Bank of Suzhou vs. Bank of China | Bank of Suzhou vs. PetroChina Co Ltd |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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