Correlation Between Kweichow Moutai and Huaxia Fund
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By analyzing existing cross correlation between Kweichow Moutai Co and Huaxia Fund Management, you can compare the effects of market volatilities on Kweichow Moutai and Huaxia Fund 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 Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Huaxia Fund.
Diversification Opportunities for Kweichow Moutai and Huaxia Fund
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kweichow and Huaxia is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Huaxia Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Fund Management 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 Huaxia Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Fund Management has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Huaxia Fund go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Huaxia Fund
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Huaxia Fund. In addition to that, Kweichow Moutai is 1.1 times more volatile than Huaxia Fund Management. It trades about -0.18 of its total potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.17 per unit of volatility. If you would invest 299.00 in Huaxia Fund Management on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Huaxia Fund Management or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Huaxia Fund Management
Performance |
| Timeline |
| Kweichow Moutai |
| Huaxia Fund Management |
Kweichow Moutai and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Huaxia Fund
The main advantage of trading using opposite Kweichow Moutai and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Huaxia Fund 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 Huaxia Fund will offset losses from the drop in Huaxia Fund's long position.| Kweichow Moutai vs. GRG Banking Equipment | Kweichow Moutai vs. Citic Offshore Helicopter | Kweichow Moutai vs. GigaDevice SemiconductorBeiji | Kweichow Moutai vs. Ping An Insurance |
| Huaxia Fund vs. Fuzhou Rockchip Electronics | Huaxia Fund vs. Tonghua Grape Wine | Huaxia Fund vs. Nantong Haixing Electronics | Huaxia Fund vs. Cabio Biotech Wuhan |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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