Correlation Between Kweichow Moutai and Jiangsu Zhongtian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Kweichow Moutai and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Jiangsu Zhongtian.
Diversification Opportunities for Kweichow Moutai and Jiangsu Zhongtian
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Jiangsu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Jiangsu Zhongtian
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Jiangsu Zhongtian. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.42 times less risky than Jiangsu Zhongtian. The stock trades about -0.02 of its potential returns per unit of risk. The Jiangsu Zhongtian Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,489 in Jiangsu Zhongtian Technology on September 26, 2024 and sell it today you would earn a total of 22.00 from holding Jiangsu Zhongtian Technology or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Kweichow Moutai |
| Jiangsu Zhongtian |
Kweichow Moutai and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Jiangsu Zhongtian
The main advantage of trading using opposite Kweichow Moutai and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Kweichow Moutai vs. China Life Insurance | Kweichow Moutai vs. Beijing Wandong Medical | Kweichow Moutai vs. Allmed Medical Products | Kweichow Moutai vs. Lootom Telcovideo Network |
| Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. Contemporary Amperex Technology | Jiangsu Zhongtian vs. G bits Network Technology | Jiangsu Zhongtian vs. BYD Co Ltd |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |