Correlation Between Kweichow Moutai and Harbin Air
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By analyzing existing cross correlation between Kweichow Moutai Co and Harbin Air Conditioning, you can compare the effects of market volatilities on Kweichow Moutai and Harbin Air 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 Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Harbin Air.
Diversification Opportunities for Kweichow Moutai and Harbin Air
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Harbin is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning 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 Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Harbin Air go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Harbin Air
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.38 times more return on investment than Harbin Air. However, Kweichow Moutai Co is 2.63 times less risky than Harbin Air. It trades about 0.06 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about -0.2 per unit of risk. If you would invest 150,900 in Kweichow Moutai Co on September 27, 2024 and sell it today you would earn a total of 2,100 from holding Kweichow Moutai Co or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Harbin Air Conditioning
Performance |
| Timeline |
| Kweichow Moutai |
| Harbin Air Conditioning |
Kweichow Moutai and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Harbin Air
The main advantage of trading using opposite Kweichow Moutai and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Harbin Air 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 Harbin Air will offset losses from the drop in Harbin Air's long position.| Kweichow Moutai vs. PetroChina Co Ltd | Kweichow Moutai vs. China Mobile Limited | Kweichow Moutai vs. CNOOC Limited | Kweichow Moutai vs. Ping An Insurance |
| Harbin Air vs. Kweichow Moutai Co | Harbin Air vs. Contemporary Amperex Technology | Harbin Air vs. G bits Network Technology | Harbin Air vs. BYD Co Ltd |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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