Correlation Between Kweichow Moutai and Keda Clean
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By analyzing existing cross correlation between Kweichow Moutai Co and Keda Clean Energy, you can compare the effects of market volatilities on Kweichow Moutai and Keda Clean 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 Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Keda Clean.
Diversification Opportunities for Kweichow Moutai and Keda Clean
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Keda is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Keda Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keda Clean Energy 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 Keda Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keda Clean Energy has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Keda Clean go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Keda Clean
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.59 times more return on investment than Keda Clean. However, Kweichow Moutai Co is 1.69 times less risky than Keda Clean. It trades about -0.14 of its potential returns per unit of risk. Keda Clean Energy is currently generating about -0.11 per unit of risk. If you would invest 157,380 in Kweichow Moutai Co on September 15, 2024 and sell it today you would lose (5,480) from holding Kweichow Moutai Co or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Keda Clean Energy
Performance |
| Timeline |
| Kweichow Moutai |
| Keda Clean Energy |
Kweichow Moutai and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Keda Clean
The main advantage of trading using opposite Kweichow Moutai and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Keda Clean 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 Keda Clean will offset losses from the drop in Keda Clean's long position.| Kweichow Moutai vs. Huasi Agricultural Development | Kweichow Moutai vs. Long Yuan Construction | Kweichow Moutai vs. Xingguang Agricultural Mach | Kweichow Moutai vs. Zhongzhu Medical Holdings |
| Keda Clean vs. Industrial and Commercial | Keda Clean vs. Kweichow Moutai Co | Keda Clean vs. Agricultural Bank of | Keda Clean vs. China Mobile Limited |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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