Correlation Between Kweichow Moutai and Beijing Wandong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Beijing Wandong Medical, you can compare the effects of market volatilities on Kweichow Moutai and Beijing Wandong 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 Beijing Wandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Beijing Wandong.
Diversification Opportunities for Kweichow Moutai and Beijing Wandong
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Beijing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Beijing Wandong Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wandong Medical 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 Beijing Wandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wandong Medical has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Beijing Wandong go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Beijing Wandong
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Beijing Wandong. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.04 times less risky than Beijing Wandong. The stock trades about -0.09 of its potential returns per unit of risk. The Beijing Wandong Medical is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,429 in Beijing Wandong Medical on August 26, 2024 and sell it today you would earn a total of 243.00 from holding Beijing Wandong Medical or generate 17.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Beijing Wandong Medical
Performance |
| Timeline |
| Kweichow Moutai |
| Beijing Wandong Medical |
Kweichow Moutai and Beijing Wandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Beijing Wandong
The main advantage of trading using opposite Kweichow Moutai and Beijing Wandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Beijing Wandong 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 Beijing Wandong will offset losses from the drop in Beijing Wandong'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 |
| Beijing Wandong vs. Bank of China | Beijing Wandong vs. Kweichow Moutai Co | Beijing Wandong vs. PetroChina Co Ltd | Beijing Wandong 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |