Correlation Between Kweichow Moutai and GKHT Medical
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By analyzing existing cross correlation between Kweichow Moutai Co and GKHT Medical Technology, you can compare the effects of market volatilities on Kweichow Moutai and GKHT Medical 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 GKHT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and GKHT Medical.
Diversification Opportunities for Kweichow Moutai and GKHT Medical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and GKHT is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and GKHT Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GKHT Medical Technology 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 GKHT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GKHT Medical Technology has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and GKHT Medical go up and down completely randomly.
Pair Corralation between Kweichow Moutai and GKHT Medical
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.43 times more return on investment than GKHT Medical. However, Kweichow Moutai Co is 2.34 times less risky than GKHT Medical. It trades about -0.01 of its potential returns per unit of risk. GKHT Medical Technology is currently generating about -0.05 per unit of risk. If you would invest 172,344 in Kweichow Moutai Co on August 26, 2024 and sell it today you would lose (21,562) from holding Kweichow Moutai Co or give up 12.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 87.63% |
| Values | Daily Returns |
Kweichow Moutai Co vs. GKHT Medical Technology
Performance |
| Timeline |
| Kweichow Moutai |
| GKHT Medical Technology |
Kweichow Moutai and GKHT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and GKHT Medical
The main advantage of trading using opposite Kweichow Moutai and GKHT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, GKHT Medical 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 GKHT Medical will offset losses from the drop in GKHT Medical'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 |
| GKHT Medical vs. Bank of China | GKHT Medical vs. Kweichow Moutai Co | GKHT Medical vs. PetroChina Co Ltd | GKHT Medical vs. Bank of Communications |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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