Correlation Between Kweichow Moutai and Xinjiang Sailing
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By analyzing existing cross correlation between Kweichow Moutai Co and Xinjiang Sailing Information, you can compare the effects of market volatilities on Kweichow Moutai and Xinjiang Sailing 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 Xinjiang Sailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Xinjiang Sailing.
Diversification Opportunities for Kweichow Moutai and Xinjiang Sailing
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Xinjiang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Xinjiang Sailing Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Sailing Inf 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 Xinjiang Sailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Sailing Inf has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Xinjiang Sailing go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Xinjiang Sailing
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.28 times more return on investment than Xinjiang Sailing. However, Kweichow Moutai Co is 3.59 times less risky than Xinjiang Sailing. It trades about -0.13 of its potential returns per unit of risk. Xinjiang Sailing Information is currently generating about -0.13 per unit of risk. If you would invest 152,674 in Kweichow Moutai Co on November 3, 2024 and sell it today you would lose (9,175) from holding Kweichow Moutai Co or give up 6.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Xinjiang Sailing Information
Performance |
| Timeline |
| Kweichow Moutai |
| Xinjiang Sailing Inf |
Kweichow Moutai and Xinjiang Sailing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Xinjiang Sailing
The main advantage of trading using opposite Kweichow Moutai and Xinjiang Sailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Xinjiang Sailing 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 Xinjiang Sailing will offset losses from the drop in Xinjiang Sailing's long position.| Kweichow Moutai vs. GRG Banking Equipment | Kweichow Moutai vs. Citic Offshore Helicopter | Kweichow Moutai vs. GigaDevice SemiconductorBeiji | Kweichow Moutai vs. Ping An Insurance |
| Xinjiang Sailing vs. Cansino Biologics | Xinjiang Sailing vs. China World Trade | Xinjiang Sailing vs. Fiberhome Telecommunication Technologies | Xinjiang Sailing vs. Tonghua Grape Wine |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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