Correlation Between Kweichow Moutai and Jiangxi Lianchuang
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By analyzing existing cross correlation between Kweichow Moutai Co and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Kweichow Moutai and Jiangxi Lianchuang 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 Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Jiangxi Lianchuang.
Diversification Opportunities for Kweichow Moutai and Jiangxi Lianchuang
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kweichow and Jiangxi is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto 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 Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Jiangxi Lianchuang
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Jiangxi Lianchuang. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.72 times less risky than Jiangxi Lianchuang. The stock trades about -0.05 of its potential returns per unit of risk. The Jiangxi Lianchuang Opto electronic is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,944 in Jiangxi Lianchuang Opto electronic on December 6, 2024 and sell it today you would earn a total of 567.00 from holding Jiangxi Lianchuang Opto electronic or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Kweichow Moutai |
| Jiangxi Lianchuang Opto |
Kweichow Moutai and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Jiangxi Lianchuang
The main advantage of trading using opposite Kweichow Moutai and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Kweichow Moutai vs. Changjiang Publishing Media | Kweichow Moutai vs. Offcn Education Technology | Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. Will Semiconductor Co |
| Jiangxi Lianchuang vs. China National Software | Jiangxi Lianchuang vs. Industrial Bank Co | Jiangxi Lianchuang vs. Guotai Epoint Software | Jiangxi Lianchuang vs. Postal Savings Bank |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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