Correlation Between Kweichow Moutai and Harbin Hatou
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By analyzing existing cross correlation between Kweichow Moutai Co and Harbin Hatou Investment, you can compare the effects of market volatilities on Kweichow Moutai and Harbin Hatou 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 Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Harbin Hatou.
Diversification Opportunities for Kweichow Moutai and Harbin Hatou
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Harbin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou 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 Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Harbin Hatou go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Harbin Hatou
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Harbin Hatou. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.66 times less risky than Harbin Hatou. The stock trades about -0.01 of its potential returns per unit of risk. The Harbin Hatou Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 494.00 in Harbin Hatou Investment on September 2, 2024 and sell it today you would earn a total of 178.00 from holding Harbin Hatou Investment or generate 36.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Harbin Hatou Investment
Performance |
| Timeline |
| Kweichow Moutai |
| Harbin Hatou Investment |
Kweichow Moutai and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Harbin Hatou
The main advantage of trading using opposite Kweichow Moutai and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Harbin Hatou 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 Harbin Hatou will offset losses from the drop in Harbin Hatou's long position.| Kweichow Moutai vs. Caihong Display Devices | Kweichow Moutai vs. Ningxia Building Materials | Kweichow Moutai vs. Guangzhou Tinci Materials | Kweichow Moutai vs. Cultural Investment Holdings |
| Harbin Hatou vs. Fujian Boss Software | Harbin Hatou vs. Jiangxi Naipu Mining | Harbin Hatou vs. Ye Chiu Metal | Harbin Hatou vs. Minmetals Capital 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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