Correlation Between Kweichow Moutai and Guangxi Wuzhou
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By analyzing existing cross correlation between Kweichow Moutai Co and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Kweichow Moutai and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Guangxi Wuzhou.
Diversification Opportunities for Kweichow Moutai and Guangxi Wuzhou
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kweichow and Guangxi is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Guangxi Wuzhou
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Guangxi Wuzhou. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.51 times less risky than Guangxi Wuzhou. The stock trades about -0.02 of its potential returns per unit of risk. The Guangxi Wuzhou Communications is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 342.00 in Guangxi Wuzhou Communications on October 25, 2024 and sell it today you would earn a total of 98.00 from holding Guangxi Wuzhou Communications or generate 28.65% 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. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Kweichow Moutai |
| Guangxi Wuzhou Commu |
Kweichow Moutai and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Guangxi Wuzhou
The main advantage of trading using opposite Kweichow Moutai and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Kweichow Moutai vs. Cultural Investment Holdings | Kweichow Moutai vs. Jiangsu Yueda Investment | Kweichow Moutai vs. Beijing Jiaman Dress | Kweichow Moutai vs. Henan Shuanghui Investment |
| Guangxi Wuzhou vs. Zhejiang Yongjin Metal | Guangxi Wuzhou vs. Chinese Universe Publishing | Guangxi Wuzhou vs. Qtone Education Group | Guangxi Wuzhou vs. Shanghai Action Education |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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