Correlation Between Kweichow Moutai and Dawning Information
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By analyzing existing cross correlation between Kweichow Moutai Co and Dawning Information Industry, you can compare the effects of market volatilities on Kweichow Moutai and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Dawning Information.
Diversification Opportunities for Kweichow Moutai and Dawning Information
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Dawning is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Dawning Information go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Dawning Information
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Dawning Information. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.38 times less risky than Dawning Information. The stock trades about -0.02 of its potential returns per unit of risk. The Dawning Information Industry is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,499 in Dawning Information Industry on October 25, 2024 and sell it today you would earn a total of 4,053 from holding Dawning Information Industry or generate 162.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Dawning Information Industry
Performance |
| Timeline |
| Kweichow Moutai |
| Dawning Information |
Kweichow Moutai and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Dawning Information
The main advantage of trading using opposite Kweichow Moutai and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Kweichow Moutai vs. Cultural Investment Holdings | Kweichow Moutai vs. Jiangsu Yueda Investment | Kweichow Moutai vs. Beijing Jiaman Dress | Kweichow Moutai vs. Henan Shuanghui Investment |
| Dawning Information vs. Agricultural Bank of | Dawning Information vs. Industrial and Commercial | Dawning Information vs. Bank of China | Dawning Information vs. China Construction Bank |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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