Correlation Between Kweichow Moutai and Bank of XiAn
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By analyzing existing cross correlation between Kweichow Moutai Co and Bank of XiAn, you can compare the effects of market volatilities on Kweichow Moutai and Bank of XiAn 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 Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Bank of XiAn.
Diversification Opportunities for Kweichow Moutai and Bank of XiAn
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Bank is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn 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 Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Bank of XiAn go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Bank of XiAn
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.69 times more return on investment than Bank of XiAn. However, Kweichow Moutai Co is 1.45 times less risky than Bank of XiAn. It trades about -0.22 of its potential returns per unit of risk. Bank of XiAn is currently generating about -0.16 per unit of risk. If you would invest 152,713 in Kweichow Moutai Co on October 20, 2024 and sell it today you would lose (7,238) from holding Kweichow Moutai Co or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Bank of XiAn
Performance |
| Timeline |
| Kweichow Moutai |
| Bank of XiAn |
Kweichow Moutai and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Bank of XiAn
The main advantage of trading using opposite Kweichow Moutai and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn's long position.| Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. Haima Automobile Group | Kweichow Moutai vs. Jiangsu Xinri E Vehicle | Kweichow Moutai vs. Jiangsu Phoenix Publishing |
| Bank of XiAn vs. Kweichow Moutai Co | Bank of XiAn vs. Contemporary Amperex Technology | Bank of XiAn vs. G bits Network Technology | Bank of XiAn vs. BYD Co Ltd |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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