Correlation Between Kweichow Moutai and Hengerda New
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By analyzing existing cross correlation between Kweichow Moutai Co and Hengerda New Materials, you can compare the effects of market volatilities on Kweichow Moutai and Hengerda New 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 Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Hengerda New.
Diversification Opportunities for Kweichow Moutai and Hengerda New
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Hengerda is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials 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 Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Hengerda New go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Hengerda New
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Hengerda New. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.99 times less risky than Hengerda New. The stock trades about -0.17 of its potential returns per unit of risk. The Hengerda New Materials is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,011 in Hengerda New Materials on September 12, 2024 and sell it today you would lose (18.00) from holding Hengerda New Materials or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Hengerda New Materials
Performance |
| Timeline |
| Kweichow Moutai |
| Hengerda New Materials |
Kweichow Moutai and Hengerda New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Hengerda New
The main advantage of trading using opposite Kweichow Moutai and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New's long position.| Kweichow Moutai vs. Luyin Investment Group | Kweichow Moutai vs. Sichuan Fulin Transportation | Kweichow Moutai vs. Zhongshan Broad Ocean Motor | Kweichow Moutai vs. Southchip Semiconductor Technology |
| Hengerda New vs. Agricultural Bank of | Hengerda New vs. Industrial and Commercial | Hengerda New vs. Bank of China | Hengerda New vs. PetroChina Co Ltd |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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