Correlation Between Kweichow Moutai and Qingdao Hiron
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By analyzing existing cross correlation between Kweichow Moutai Co and Qingdao Hiron Commercial, you can compare the effects of market volatilities on Kweichow Moutai and Qingdao Hiron 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 Qingdao Hiron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Qingdao Hiron.
Diversification Opportunities for Kweichow Moutai and Qingdao Hiron
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Qingdao is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Qingdao Hiron Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Hiron Commercial 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 Qingdao Hiron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Hiron Commercial has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Qingdao Hiron go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Qingdao Hiron
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Qingdao Hiron. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.56 times less risky than Qingdao Hiron. The stock trades about -0.18 of its potential returns per unit of risk. The Qingdao Hiron Commercial is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,108 in Qingdao Hiron Commercial on November 3, 2024 and sell it today you would earn a total of 14.00 from holding Qingdao Hiron Commercial or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Qingdao Hiron Commercial
Performance |
| Timeline |
| Kweichow Moutai |
| Qingdao Hiron Commercial |
Kweichow Moutai and Qingdao Hiron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Qingdao Hiron
The main advantage of trading using opposite Kweichow Moutai and Qingdao Hiron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Qingdao Hiron 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 Qingdao Hiron will offset losses from the drop in Qingdao Hiron's long position.| Kweichow Moutai vs. GRG Banking Equipment | Kweichow Moutai vs. Citic Offshore Helicopter | Kweichow Moutai vs. GigaDevice SemiconductorBeiji | Kweichow Moutai vs. Ping An Insurance |
| Qingdao Hiron vs. Peoples Insurance of | Qingdao Hiron vs. Huaibei Mining Holdings | Qingdao Hiron vs. Tianjin Silvery Dragon | Qingdao Hiron vs. Uroica Mining Safety |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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