Correlation Between Kweichow Moutai and Nanjing Putian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Kweichow Moutai and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Nanjing Putian.
Diversification Opportunities for Kweichow Moutai and Nanjing Putian
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Nanjing is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Nanjing Putian go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Nanjing Putian
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 3.77 times less risky than Nanjing Putian. The stock trades about -0.14 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 340.00 in Nanjing Putian Telecommunications on November 4, 2024 and sell it today you would earn a total of 48.00 from holding Nanjing Putian Telecommunications or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Kweichow Moutai |
| Nanjing Putian Telec |
Kweichow Moutai and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Nanjing Putian
The main advantage of trading using opposite Kweichow Moutai and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian'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 |
| Nanjing Putian vs. Sharetronic Data Technology | Nanjing Putian vs. Bonree Data Technology | Nanjing Putian vs. Shenyang Chemical Industry | Nanjing Putian vs. Xinxiang Chemical Fiber |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| 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 |