Correlation Between Kweichow Moutai and Jiangsu Yueda
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By analyzing existing cross correlation between Kweichow Moutai Co and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Kweichow Moutai and Jiangsu Yueda 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 Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Jiangsu Yueda.
Diversification Opportunities for Kweichow Moutai and Jiangsu Yueda
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Jiangsu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Jiangsu Yueda
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Jiangsu Yueda. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.52 times less risky than Jiangsu Yueda. The stock trades about -0.12 of its potential returns per unit of risk. The Jiangsu Yueda Investment is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 461.00 in Jiangsu Yueda Investment on August 28, 2024 and sell it today you would lose (3.00) from holding Jiangsu Yueda Investment or give up 0.65% 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. Jiangsu Yueda Investment
Performance |
| Timeline |
| Kweichow Moutai |
| Jiangsu Yueda Investment |
Kweichow Moutai and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Jiangsu Yueda
The main advantage of trading using opposite Kweichow Moutai and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Jiangsu Yueda 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 Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Kweichow Moutai vs. Xiangyang Automobile Bearing | Kweichow Moutai vs. Northking Information Technology | Kweichow Moutai vs. Niutech Environment Technology | Kweichow Moutai vs. Western Superconducting Tech |
| Jiangsu Yueda vs. Ming Yang Smart | Jiangsu Yueda vs. 159681 | Jiangsu Yueda vs. 159005 | Jiangsu Yueda vs. Loctek Ergonomic Technology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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