Correlation Between Kweichow Moutai and Xinhua Winshare
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By analyzing existing cross correlation between Kweichow Moutai Co and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Kweichow Moutai and Xinhua Winshare 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 Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Xinhua Winshare.
Diversification Opportunities for Kweichow Moutai and Xinhua Winshare
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Xinhua is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ 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 Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Xinhua Winshare
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.69 times more return on investment than Xinhua Winshare. However, Kweichow Moutai Co is 1.46 times less risky than Xinhua Winshare. It trades about -0.01 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.03 per unit of risk. If you would invest 172,344 in Kweichow Moutai Co on August 26, 2024 and sell it today you would lose (21,562) from holding Kweichow Moutai Co or give up 12.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Kweichow Moutai |
| Xinhua Winshare Publ |
Kweichow Moutai and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Xinhua Winshare
The main advantage of trading using opposite Kweichow Moutai and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| Kweichow Moutai vs. State Grid InformationCommunication | Kweichow Moutai vs. CICT Mobile Communication | Kweichow Moutai vs. Western Mining Co | Kweichow Moutai vs. Allwin Telecommunication Co |
| Xinhua Winshare vs. China State Construction | Xinhua Winshare vs. Huafa Industrial Co | Xinhua Winshare vs. China International Capital | Xinhua Winshare vs. Kweichow Moutai 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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