Correlation Between Kweichow Moutai and Jiangsu Seagull
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By analyzing existing cross correlation between Kweichow Moutai Co and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Kweichow Moutai and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Jiangsu Seagull.
Diversification Opportunities for Kweichow Moutai and Jiangsu Seagull
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Jiangsu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Jiangsu Seagull
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.53 times more return on investment than Jiangsu Seagull. However, Kweichow Moutai Co is 1.88 times less risky than Jiangsu Seagull. It trades about -0.01 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about -0.1 per unit of risk. If you would invest 153,200 in Kweichow Moutai Co on August 31, 2024 and sell it today you would lose (626.00) from holding Kweichow Moutai Co or give up 0.41% 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. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Kweichow Moutai |
| Jiangsu Seagull Cooling |
Kweichow Moutai and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Jiangsu Seagull
The main advantage of trading using opposite Kweichow Moutai and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Kweichow Moutai vs. Changchun Engley Automobile | Kweichow Moutai vs. Fiberhome Telecommunication Technologies | Kweichow Moutai vs. Shandong Longquan Pipeline | Kweichow Moutai vs. Western Mining Co |
| Jiangsu Seagull vs. Muyuan Foodstuff Co | Jiangsu Seagull vs. Tonghua Grape Wine | Jiangsu Seagull vs. Shenzhen Kexin Communication | Jiangsu Seagull vs. Wuhan Yangtze Communication |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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