Correlation Between Kweichow Moutai and Wonders Information
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By analyzing existing cross correlation between Kweichow Moutai Co and Wonders Information, you can compare the effects of market volatilities on Kweichow Moutai and Wonders Information 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 Wonders Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Wonders Information.
Diversification Opportunities for Kweichow Moutai and Wonders Information
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Wonders is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Wonders Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonders Information 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 Wonders Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonders Information has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Wonders Information go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Wonders Information
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Wonders Information. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 4.29 times less risky than Wonders Information. The stock trades about -0.02 of its potential returns per unit of risk. The Wonders Information is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 813.00 in Wonders Information on August 31, 2024 and sell it today you would earn a total of 74.00 from holding Wonders Information or generate 9.1% 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. Wonders Information
Performance |
| Timeline |
| Kweichow Moutai |
| Wonders Information |
Kweichow Moutai and Wonders Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Wonders Information
The main advantage of trading using opposite Kweichow Moutai and Wonders Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Wonders Information 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 Wonders Information will offset losses from the drop in Wonders Information's long position.| Kweichow Moutai vs. Changchun Engley Automobile | Kweichow Moutai vs. Fiberhome Telecommunication Technologies | Kweichow Moutai vs. Shandong Longquan Pipeline | Kweichow Moutai vs. Western Mining Co |
| Wonders Information vs. Kweichow Moutai Co | Wonders Information vs. NAURA Technology Group | Wonders Information vs. APT Medical | Wonders Information vs. Contemporary Amperex Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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