Correlation Between Kweichow Moutai and Industrial Bank
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By analyzing existing cross correlation between Kweichow Moutai Co and Industrial Bank Co, you can compare the effects of market volatilities on Kweichow Moutai and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Industrial Bank.
Diversification Opportunities for Kweichow Moutai and Industrial Bank
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kweichow and Industrial is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Industrial Bank go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Industrial Bank
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Industrial Bank. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.03 times less risky than Industrial Bank. The stock trades about -0.03 of its potential returns per unit of risk. The Industrial Bank Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,955 in Industrial Bank Co on November 30, 2024 and sell it today you would earn a total of 120.00 from holding Industrial Bank Co or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Industrial Bank Co
Performance |
| Timeline |
| Kweichow Moutai |
| Industrial Bank |
Kweichow Moutai and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Industrial Bank
The main advantage of trading using opposite Kweichow Moutai and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Kweichow Moutai vs. China National Software | Kweichow Moutai vs. Shaanxi Meineng Clean | Kweichow Moutai vs. Guotai Epoint Software | Kweichow Moutai vs. Qiaoyin Environmental Tech |
| Industrial Bank vs. MayAir Technology Co | Industrial Bank vs. Hubei Xingfa Chemicals | Industrial Bank vs. Digiwin Software Co | Industrial Bank vs. Guangzhou KingTeller 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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