Correlation Between Kweichow Moutai and Xiamen CD
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By analyzing existing cross correlation between Kweichow Moutai Co and Xiamen CD, you can compare the effects of market volatilities on Kweichow Moutai and Xiamen CD 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 Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Xiamen CD.
Diversification Opportunities for Kweichow Moutai and Xiamen CD
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Xiamen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD 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 Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Xiamen CD go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Xiamen CD
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Xiamen CD. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.62 times less risky than Xiamen CD. The stock trades about -0.12 of its potential returns per unit of risk. The Xiamen CD is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 954.00 in Xiamen CD on August 28, 2024 and sell it today you would lose (13.00) from holding Xiamen CD or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Xiamen CD
Performance |
| Timeline |
| Kweichow Moutai |
| Xiamen CD |
Kweichow Moutai and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Xiamen CD
The main advantage of trading using opposite Kweichow Moutai and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Xiamen CD 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 Xiamen CD will offset losses from the drop in Xiamen CD's long position.| Kweichow Moutai vs. Huafa Industrial Co | Kweichow Moutai vs. Xinjiang Baodi Mining | Kweichow Moutai vs. Guangzhou Haozhi Industrial | Kweichow Moutai vs. Hainan Mining Co |
| Xiamen CD vs. Industrial and Commercial | Xiamen CD vs. Kweichow Moutai Co | Xiamen CD vs. Agricultural Bank of | Xiamen CD 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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