Correlation Between Kweichow Moutai and Fujian Nanwang
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By analyzing existing cross correlation between Kweichow Moutai Co and Fujian Nanwang Environment, you can compare the effects of market volatilities on Kweichow Moutai and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Fujian Nanwang.
Diversification Opportunities for Kweichow Moutai and Fujian Nanwang
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kweichow and Fujian is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Fujian Nanwang
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.37 times more return on investment than Fujian Nanwang. However, Kweichow Moutai Co is 2.7 times less risky than Fujian Nanwang. It trades about -0.26 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about -0.24 per unit of risk. If you would invest 152,500 in Kweichow Moutai Co on October 29, 2024 and sell it today you would lose (8,900) from holding Kweichow Moutai Co or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Kweichow Moutai |
| Fujian Nanwang Envir |
Kweichow Moutai and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Fujian Nanwang
The main advantage of trading using opposite Kweichow Moutai and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Kweichow Moutai vs. Do Fluoride Chemicals Co | Kweichow Moutai vs. Porton Fine Chemicals | Kweichow Moutai vs. Guangzhou Zhujiang Brewery | Kweichow Moutai vs. Guangdong Wens Foodstuff |
| Fujian Nanwang vs. Kuang Chi Technologies | Fujian Nanwang vs. Jinhe Biotechnology Co | Fujian Nanwang vs. Kangping Technology Co | Fujian Nanwang vs. Montage Technology Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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