Correlation Between Kweichow Moutai and Grinm Advanced
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By analyzing existing cross correlation between Kweichow Moutai Co and Grinm Advanced Materials, you can compare the effects of market volatilities on Kweichow Moutai and Grinm Advanced 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 Grinm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Grinm Advanced.
Diversification Opportunities for Kweichow Moutai and Grinm Advanced
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Grinm is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Grinm Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grinm Advanced Materials 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 Grinm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grinm Advanced Materials has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Grinm Advanced go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Grinm Advanced
Assuming the 90 days trading horizon Kweichow Moutai is expected to generate 8.84 times less return on investment than Grinm Advanced. But when comparing it to its historical volatility, Kweichow Moutai Co is 1.84 times less risky than Grinm Advanced. It trades about 0.07 of its potential returns per unit of risk. Grinm Advanced Materials is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 911.00 in Grinm Advanced Materials on September 2, 2024 and sell it today you would earn a total of 1,336 from holding Grinm Advanced Materials or generate 146.65% 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. Grinm Advanced Materials
Performance |
| Timeline |
| Kweichow Moutai |
| Grinm Advanced Materials |
Kweichow Moutai and Grinm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Grinm Advanced
The main advantage of trading using opposite Kweichow Moutai and Grinm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Grinm Advanced 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 Grinm Advanced will offset losses from the drop in Grinm Advanced'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 |
| Grinm Advanced vs. Anhui Gujing Distillery | Grinm Advanced vs. Luyin Investment Group | Grinm Advanced vs. Western Metal Materials | Grinm Advanced vs. Zhejiang Construction Investment |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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