Correlation Between Kweichow Moutai and Jinxiandai Information
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By analyzing existing cross correlation between Kweichow Moutai Co and Jinxiandai Information Industry, you can compare the effects of market volatilities on Kweichow Moutai and Jinxiandai 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 Jinxiandai Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Jinxiandai Information.
Diversification Opportunities for Kweichow Moutai and Jinxiandai Information
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kweichow and Jinxiandai is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Jinxiandai Information Industr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinxiandai 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 Jinxiandai Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinxiandai Information has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Jinxiandai Information go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Jinxiandai Information
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Jinxiandai Information. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.48 times less risky than Jinxiandai Information. The stock trades about -0.02 of its potential returns per unit of risk. The Jinxiandai Information Industry is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 949.00 in Jinxiandai Information Industry on November 5, 2024 and sell it today you would lose (57.00) from holding Jinxiandai Information Industry or give up 6.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Jinxiandai Information Industr
Performance |
| Timeline |
| Kweichow Moutai |
| Jinxiandai Information |
Kweichow Moutai and Jinxiandai Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Jinxiandai Information
The main advantage of trading using opposite Kweichow Moutai and Jinxiandai Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Jinxiandai 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 Jinxiandai Information will offset losses from the drop in Jinxiandai Information's long position.| Kweichow Moutai vs. Anji Foodstuff Co | Kweichow Moutai vs. JuneYao Dairy Co | Kweichow Moutai vs. Guizhou Chanhen Chemical | Kweichow Moutai vs. Xinxiang Chemical Fiber |
| Jinxiandai Information vs. Hygon Information Technology | Jinxiandai Information vs. BTG Hotels Group | Jinxiandai Information vs. Qilu Bank Co | Jinxiandai Information vs. Biwin Storage 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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