Correlation Between Kweichow Moutai and Dr Peng
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By analyzing existing cross correlation between Kweichow Moutai Co and Dr Peng Telecom, you can compare the effects of market volatilities on Kweichow Moutai and Dr Peng 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 Dr Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Dr Peng.
Diversification Opportunities for Kweichow Moutai and Dr Peng
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kweichow and 600804 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Dr Peng Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dr Peng Telecom 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 Dr Peng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dr Peng Telecom has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Dr Peng go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Dr Peng
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Dr Peng. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 3.6 times less risky than Dr Peng. The stock trades about -0.15 of its potential returns per unit of risk. The Dr Peng Telecom is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 189.00 in Dr Peng Telecom on October 22, 2024 and sell it today you would earn a total of 19.00 from holding Dr Peng Telecom or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Dr Peng Telecom
Performance |
| Timeline |
| Kweichow Moutai |
| Dr Peng Telecom |
Kweichow Moutai and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Dr Peng
The main advantage of trading using opposite Kweichow Moutai and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Dr Peng 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 Dr Peng will offset losses from the drop in Dr Peng's long position.| Kweichow Moutai vs. ZJBC Information Technology | Kweichow Moutai vs. Jinxiandai Information Industry | Kweichow Moutai vs. Guangzhou Ruoyuchen Information | Kweichow Moutai vs. Kuangda Technology Group |
| Dr Peng vs. Jinsanjiang Silicon Material | Dr Peng vs. Chengdu Xinzhu RoadBridge | Dr Peng vs. Chongqing Sulian Plastic | Dr Peng vs. Guangzhou Tinci Materials |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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