Correlation Between Kweichow Moutai and Anhui Huaren
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By analyzing existing cross correlation between Kweichow Moutai Co and Anhui Huaren Health, you can compare the effects of market volatilities on Kweichow Moutai and Anhui Huaren 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 Anhui Huaren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Anhui Huaren.
Diversification Opportunities for Kweichow Moutai and Anhui Huaren
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Anhui is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Anhui Huaren Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaren Health 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 Anhui Huaren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaren Health has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Anhui Huaren go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Anhui Huaren
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.5 times more return on investment than Anhui Huaren. However, Kweichow Moutai Co is 1.98 times less risky than Anhui Huaren. It trades about -0.02 of its potential returns per unit of risk. Anhui Huaren Health is currently generating about -0.04 per unit of risk. If you would invest 181,336 in Kweichow Moutai Co on September 28, 2024 and sell it today you would lose (28,557) from holding Kweichow Moutai Co or give up 15.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.29% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Anhui Huaren Health
Performance |
| Timeline |
| Kweichow Moutai |
| Anhui Huaren Health |
Kweichow Moutai and Anhui Huaren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Anhui Huaren
The main advantage of trading using opposite Kweichow Moutai and Anhui Huaren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Anhui Huaren 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 Anhui Huaren will offset losses from the drop in Anhui Huaren's long position.| Kweichow Moutai vs. Chengtun Mining Group | Kweichow Moutai vs. Healthcare Co | Kweichow Moutai vs. Tibet Huayu Mining | Kweichow Moutai vs. Mingchen Health Co |
| Anhui Huaren vs. Industrial and Commercial | Anhui Huaren vs. Kweichow Moutai Co | Anhui Huaren vs. Agricultural Bank of | Anhui Huaren vs. China Mobile Limited |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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