Correlation Between Kweichow Moutai and Zhejiang Yayi
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By analyzing existing cross correlation between Kweichow Moutai Co and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Kweichow Moutai and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Zhejiang Yayi.
Diversification Opportunities for Kweichow Moutai and Zhejiang Yayi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Zhejiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Zhejiang Yayi
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Zhejiang Yayi. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.79 times less risky than Zhejiang Yayi. The stock trades about -0.08 of its potential returns per unit of risk. The Zhejiang Yayi Metal is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,500 in Zhejiang Yayi Metal on August 25, 2024 and sell it today you would earn a total of 33.00 from holding Zhejiang Yayi Metal or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Kweichow Moutai |
| Zhejiang Yayi Metal |
Kweichow Moutai and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Zhejiang Yayi
The main advantage of trading using opposite Kweichow Moutai and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Kweichow Moutai vs. State Grid InformationCommunication | Kweichow Moutai vs. CICT Mobile Communication | Kweichow Moutai vs. Western Mining Co | Kweichow Moutai vs. Allwin Telecommunication Co |
| Zhejiang Yayi vs. China Petroleum Chemical | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. China State Construction | Zhejiang Yayi vs. China Railway Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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