Correlation Between Kweichow Moutai and Qinghaihuading Industrial
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By analyzing existing cross correlation between Kweichow Moutai Co and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Kweichow Moutai and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Qinghaihuading Industrial.
Diversification Opportunities for Kweichow Moutai and Qinghaihuading Industrial
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Qinghaihuading is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Qinghaihuading Industrial
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.39 times more return on investment than Qinghaihuading Industrial. However, Kweichow Moutai Co is 2.54 times less risky than Qinghaihuading Industrial. It trades about 0.29 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.06 per unit of risk. If you would invest 140,380 in Kweichow Moutai Co on December 4, 2024 and sell it today you would earn a total of 8,322 from holding Kweichow Moutai Co or generate 5.93% 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. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Kweichow Moutai |
| Qinghaihuading Industrial |
Kweichow Moutai and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Qinghaihuading Industrial
The main advantage of trading using opposite Kweichow Moutai and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.| Kweichow Moutai vs. CareRay Digital Medical | Kweichow Moutai vs. Eyebright Medical Technology | Kweichow Moutai vs. Double Medical Technology | Kweichow Moutai vs. Kontour Medical Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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