Correlation Between Kweichow Moutai and Zhejiang Mtcn
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Zhejiang Mtcn Technology, you can compare the effects of market volatilities on Kweichow Moutai and Zhejiang Mtcn 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 Zhejiang Mtcn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Zhejiang Mtcn.
Diversification Opportunities for Kweichow Moutai and Zhejiang Mtcn
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Zhejiang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Zhejiang Mtcn Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Mtcn Technology 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 Zhejiang Mtcn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Mtcn Technology has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Zhejiang Mtcn go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Zhejiang Mtcn
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Zhejiang Mtcn. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.29 times less risky than Zhejiang Mtcn. The stock trades about -0.04 of its potential returns per unit of risk. The Zhejiang Mtcn Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,750 in Zhejiang Mtcn Technology on September 4, 2024 and sell it today you would earn a total of 156.00 from holding Zhejiang Mtcn Technology or generate 4.16% 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. Zhejiang Mtcn Technology
Performance |
| Timeline |
| Kweichow Moutai |
| Zhejiang Mtcn Technology |
Kweichow Moutai and Zhejiang Mtcn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Zhejiang Mtcn
The main advantage of trading using opposite Kweichow Moutai and Zhejiang Mtcn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Zhejiang Mtcn 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 Zhejiang Mtcn will offset losses from the drop in Zhejiang Mtcn's long position.| Kweichow Moutai vs. Chengtun Mining Group | Kweichow Moutai vs. Chenzhou Jingui Silver | Kweichow Moutai vs. Guangdong Silvere Sci | Kweichow Moutai vs. Jinhui Mining Co |
| Zhejiang Mtcn vs. Kingsignal Technology Co | Zhejiang Mtcn vs. Zhejiang Kingland Pipeline | Zhejiang Mtcn vs. Hubei Xingfa Chemicals | Zhejiang Mtcn vs. ROPEOK Technology Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |