Correlation Between Kweichow Moutai and State Grid
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By analyzing existing cross correlation between Kweichow Moutai Co and State Grid InformationCommunication, you can compare the effects of market volatilities on Kweichow Moutai and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and State Grid.
Diversification Opportunities for Kweichow Moutai and State Grid
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and State is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and State Grid go up and down completely randomly.
Pair Corralation between Kweichow Moutai and State Grid
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.76 times more return on investment than State Grid. However, Kweichow Moutai Co is 1.31 times less risky than State Grid. It trades about 0.02 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.01 per unit of risk. If you would invest 139,802 in Kweichow Moutai Co on October 26, 2024 and sell it today you would earn a total of 4,498 from holding Kweichow Moutai Co or generate 3.22% 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. State Grid InformationCommunic
Performance |
| Timeline |
| Kweichow Moutai |
| State Grid Informati |
Kweichow Moutai and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and State Grid
The main advantage of trading using opposite Kweichow Moutai and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Kweichow Moutai vs. Cultural Investment Holdings | Kweichow Moutai vs. Jiangsu Yueda Investment | Kweichow Moutai vs. Beijing Jiaman Dress | Kweichow Moutai vs. Henan Shuanghui Investment |
| State Grid vs. Industrial and Commercial | State Grid vs. Kweichow Moutai Co | State Grid vs. Agricultural Bank of | State Grid 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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