Correlation Between Kweichow Moutai and Gansu Yasheng
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By analyzing existing cross correlation between Kweichow Moutai Co and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Kweichow Moutai and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Gansu Yasheng.
Diversification Opportunities for Kweichow Moutai and Gansu Yasheng
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Gansu is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Gansu Yasheng
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Gansu Yasheng. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.05 times less risky than Gansu Yasheng. The stock trades about -0.01 of its potential returns per unit of risk. The Gansu Yasheng Industrial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Gansu Yasheng Industrial on September 2, 2024 and sell it today you would lose (1.00) from holding Gansu Yasheng Industrial or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| Kweichow Moutai |
| Gansu Yasheng Industrial |
Kweichow Moutai and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Gansu Yasheng
The main advantage of trading using opposite Kweichow Moutai and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| Kweichow Moutai vs. Caihong Display Devices | Kweichow Moutai vs. Ningxia Building Materials | Kweichow Moutai vs. Guangzhou Tinci Materials | Kweichow Moutai vs. Cultural Investment Holdings |
| Gansu Yasheng vs. Hunan TV Broadcast | Gansu Yasheng vs. Zhejiang Yongjin Metal | Gansu Yasheng vs. RoadMain T Co | Gansu Yasheng vs. Hubeiyichang Transportation Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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