Correlation Between Kweichow Moutai and Xiamen Goldenhome
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By analyzing existing cross correlation between Kweichow Moutai Co and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Kweichow Moutai and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Xiamen Goldenhome.
Diversification Opportunities for Kweichow Moutai and Xiamen Goldenhome
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Xiamen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Xiamen Goldenhome
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.59 times more return on investment than Xiamen Goldenhome. However, Kweichow Moutai Co is 1.71 times less risky than Xiamen Goldenhome. It trades about -0.02 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.05 per unit of risk. If you would invest 178,632 in Kweichow Moutai Co on November 19, 2024 and sell it today you would lose (31,132) from holding Kweichow Moutai Co or give up 17.43% 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. Xiamen Goldenhome Co
Performance |
| Timeline |
| Kweichow Moutai |
| Xiamen Goldenhome |
Kweichow Moutai and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Xiamen Goldenhome
The main advantage of trading using opposite Kweichow Moutai and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| Kweichow Moutai vs. ZJBC Information Technology | Kweichow Moutai vs. Beijing Kaiwen Education | Kweichow Moutai vs. Offcn Education Technology | Kweichow Moutai vs. Invengo Information Technology |
| Xiamen Goldenhome vs. Beijing Jiaman Dress | Xiamen Goldenhome vs. Shenzhen Prolto Supply | Xiamen Goldenhome vs. Shanghai CEO Environmental | Xiamen Goldenhome vs. CICC Fund Management |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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