Correlation Between Kweichow Moutai and Guangdong Wens
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By analyzing existing cross correlation between Kweichow Moutai Co and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Kweichow Moutai and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Guangdong Wens.
Diversification Opportunities for Kweichow Moutai and Guangdong Wens
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Guangdong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Guangdong Wens go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Guangdong Wens
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Guangdong Wens. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.2 times less risky than Guangdong Wens. The stock trades about -0.03 of its potential returns per unit of risk. The Guangdong Wens Foodstuff is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,936 in Guangdong Wens Foodstuff on October 27, 2024 and sell it today you would lose (336.00) from holding Guangdong Wens Foodstuff or give up 17.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.64% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Kweichow Moutai |
| Guangdong Wens Foodstuff |
Kweichow Moutai and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Guangdong Wens
The main advantage of trading using opposite Kweichow Moutai and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| Kweichow Moutai vs. Easyhome New Retail | Kweichow Moutai vs. Peoples Insurance of | Kweichow Moutai vs. UE Furniture Co | Kweichow Moutai vs. China Life Insurance |
| Guangdong Wens vs. Luyin Investment Group | Guangdong Wens vs. Cultural Investment Holdings | Guangdong Wens vs. China Asset Management | Guangdong Wens vs. Jointo Energy Investment |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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