Correlation Between Kweichow Moutai and Zhuzhou Kibing
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By analyzing existing cross correlation between Kweichow Moutai Co and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Kweichow Moutai and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Zhuzhou Kibing.
Diversification Opportunities for Kweichow Moutai and Zhuzhou Kibing
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Zhuzhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Zhuzhou Kibing
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.65 times more return on investment than Zhuzhou Kibing. However, Kweichow Moutai Co is 1.54 times less risky than Zhuzhou Kibing. It trades about -0.01 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.05 per unit of risk. If you would invest 177,377 in Kweichow Moutai Co on September 26, 2024 and sell it today you would lose (23,495) from holding Kweichow Moutai Co or give up 13.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| Kweichow Moutai |
| Zhuzhou Kibing Group |
Kweichow Moutai and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Zhuzhou Kibing
The main advantage of trading using opposite Kweichow Moutai and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Kweichow Moutai vs. China Life Insurance | Kweichow Moutai vs. Beijing Wandong Medical | Kweichow Moutai vs. Allmed Medical Products | Kweichow Moutai vs. Lootom Telcovideo Network |
| Zhuzhou Kibing vs. Jiangsu Jinling Sports | Zhuzhou Kibing vs. Panda Financial Holding | Zhuzhou Kibing vs. China Sports Industry | Zhuzhou Kibing vs. Caihong Display Devices |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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