Correlation Between Kweichow Moutai and Changjiang Publishing
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By analyzing existing cross correlation between Kweichow Moutai Co and Changjiang Publishing Media, you can compare the effects of market volatilities on Kweichow Moutai and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Changjiang Publishing.
Diversification Opportunities for Kweichow Moutai and Changjiang Publishing
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Changjiang is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Changjiang Publishing
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.67 times more return on investment than Changjiang Publishing. However, Kweichow Moutai Co is 1.49 times less risky than Changjiang Publishing. It trades about -0.01 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about -0.03 per unit of risk. If you would invest 169,451 in Kweichow Moutai Co on August 29, 2024 and sell it today you would lose (18,551) from holding Kweichow Moutai Co or give up 10.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Changjiang Publishing Media
Performance |
| Timeline |
| Kweichow Moutai |
| Changjiang Publishing |
Kweichow Moutai and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Changjiang Publishing
The main advantage of trading using opposite Kweichow Moutai and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| Kweichow Moutai vs. Huafa Industrial Co | Kweichow Moutai vs. Xinjiang Baodi Mining | Kweichow Moutai vs. Guangzhou Haozhi Industrial | Kweichow Moutai vs. Hainan Mining Co |
| Changjiang Publishing vs. China State Construction | Changjiang Publishing vs. Huafa Industrial Co | Changjiang Publishing vs. China International Capital | Changjiang Publishing vs. Kweichow Moutai Co |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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