Correlation Between Kweichow Moutai and Jiangxi Naipu
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By analyzing existing cross correlation between Kweichow Moutai Co and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Kweichow Moutai and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Jiangxi Naipu.
Diversification Opportunities for Kweichow Moutai and Jiangxi Naipu
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Jiangxi is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Jiangxi Naipu
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Jiangxi Naipu. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.84 times less risky than Jiangxi Naipu. The stock trades about -0.03 of its potential returns per unit of risk. The Jiangxi Naipu Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,710 in Jiangxi Naipu Mining on November 2, 2024 and sell it today you would earn a total of 877.00 from holding Jiangxi Naipu Mining or generate 51.29% 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. Jiangxi Naipu Mining
Performance |
| Timeline |
| Kweichow Moutai |
| Jiangxi Naipu Mining |
Kweichow Moutai and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Jiangxi Naipu
The main advantage of trading using opposite Kweichow Moutai and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu's long position.| Kweichow Moutai vs. Fujian Wanchen Biotechnology | Kweichow Moutai vs. Shaanxi Meineng Clean | Kweichow Moutai vs. Yili Chuanning Biotechnology | Kweichow Moutai vs. Kingclean Electric Co |
| Jiangxi Naipu vs. Industrial and Commercial | Jiangxi Naipu vs. Kweichow Moutai Co | Jiangxi Naipu vs. Agricultural Bank of | Jiangxi Naipu vs. China Mobile Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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