Correlation Between Kweichow Moutai and Hualan Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Hualan Group Co, you can compare the effects of market volatilities on Kweichow Moutai and Hualan Group 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 Hualan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Hualan Group.
Diversification Opportunities for Kweichow Moutai and Hualan Group
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Hualan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Hualan Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hualan Group 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 Hualan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hualan Group has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Hualan Group go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Hualan Group
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Hualan Group. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.47 times less risky than Hualan Group. The stock trades about -0.02 of its potential returns per unit of risk. The Hualan Group Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 714.00 in Hualan Group Co on September 3, 2024 and sell it today you would earn a total of 775.00 from holding Hualan Group Co or generate 108.54% 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. Hualan Group Co
Performance |
| Timeline |
| Kweichow Moutai |
| Hualan Group |
Kweichow Moutai and Hualan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Hualan Group
The main advantage of trading using opposite Kweichow Moutai and Hualan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Hualan Group 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 Hualan Group will offset losses from the drop in Hualan Group's long position.| Kweichow Moutai vs. China Railway Materials | Kweichow Moutai vs. Peoples Insurance of | Kweichow Moutai vs. Jinsanjiang Silicon Material | Kweichow Moutai vs. Guangdong Jingyi Metal |
| Hualan Group vs. Hainan Mining Co | Hualan Group vs. Uroica Mining Safety | Hualan Group vs. Fujian Oriental Silver | Hualan Group vs. Guangdong Silvere Sci |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |