Correlation Between Kweichow Moutai and Wuhan Yangtze
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By analyzing existing cross correlation between Kweichow Moutai Co and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Kweichow Moutai and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Wuhan Yangtze.
Diversification Opportunities for Kweichow Moutai and Wuhan Yangtze
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kweichow and Wuhan is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Wuhan Yangtze
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Wuhan Yangtze. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 3.1 times less risky than Wuhan Yangtze. The stock trades about -0.14 of its potential returns per unit of risk. The Wuhan Yangtze Communication is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,103 in Wuhan Yangtze Communication on November 4, 2024 and sell it today you would earn a total of 190.00 from holding Wuhan Yangtze Communication or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Kweichow Moutai |
| Wuhan Yangtze Commun |
Kweichow Moutai and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Wuhan Yangtze
The main advantage of trading using opposite Kweichow Moutai and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Kweichow Moutai vs. Shanghai Rongtai Health | Kweichow Moutai vs. Heren Health Co | Kweichow Moutai vs. De Rucci Healthy | Kweichow Moutai vs. Shandong Sanyuan Biotechnology |
| Wuhan Yangtze vs. Gan Yuan Foods | Wuhan Yangtze vs. Yan Tai Shuang | Wuhan Yangtze vs. Nuode Investment Co | Wuhan Yangtze vs. Yankershop Food Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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