Correlation Between Kweichow Moutai and Heilongjiang Agriculture
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By analyzing existing cross correlation between Kweichow Moutai Co and Heilongjiang Agriculture Co, you can compare the effects of market volatilities on Kweichow Moutai and Heilongjiang Agriculture 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 Heilongjiang Agriculture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Heilongjiang Agriculture.
Diversification Opportunities for Kweichow Moutai and Heilongjiang Agriculture
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Heilongjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Heilongjiang Agriculture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Agriculture 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 Heilongjiang Agriculture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Agriculture has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Heilongjiang Agriculture go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Heilongjiang Agriculture
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Heilongjiang Agriculture. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.59 times less risky than Heilongjiang Agriculture. The stock trades about -0.25 of its potential returns per unit of risk. The Heilongjiang Agriculture Co is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,431 in Heilongjiang Agriculture Co on October 26, 2024 and sell it today you would lose (44.00) from holding Heilongjiang Agriculture Co or give up 3.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Heilongjiang Agriculture Co
Performance |
| Timeline |
| Kweichow Moutai |
| Heilongjiang Agriculture |
Kweichow Moutai and Heilongjiang Agriculture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Heilongjiang Agriculture
The main advantage of trading using opposite Kweichow Moutai and Heilongjiang Agriculture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Heilongjiang Agriculture 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 Heilongjiang Agriculture will offset losses from the drop in Heilongjiang Agriculture'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 |
| Heilongjiang Agriculture vs. Industrial and Commercial | Heilongjiang Agriculture vs. Kweichow Moutai Co | Heilongjiang Agriculture vs. Agricultural Bank of | Heilongjiang Agriculture 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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