Correlation Between Kweichow Moutai and Yindu Kitchen
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By analyzing existing cross correlation between Kweichow Moutai Co and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Kweichow Moutai and Yindu Kitchen 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 Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Yindu Kitchen.
Diversification Opportunities for Kweichow Moutai and Yindu Kitchen
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Yindu is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Yindu Kitchen Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yindu Kitchen Equipment 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 Yindu Kitchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yindu Kitchen Equipment has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Yindu Kitchen
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.81 times more return on investment than Yindu Kitchen. However, Kweichow Moutai Co is 1.23 times less risky than Yindu Kitchen. It trades about -0.02 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about -0.02 per unit of risk. If you would invest 176,250 in Kweichow Moutai Co on September 14, 2024 and sell it today you would lose (19,670) from holding Kweichow Moutai Co or give up 11.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Kweichow Moutai |
| Yindu Kitchen Equipment |
Kweichow Moutai and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Yindu Kitchen
The main advantage of trading using opposite Kweichow Moutai and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Yindu Kitchen 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 Yindu Kitchen will offset losses from the drop in Yindu Kitchen's long position.| Kweichow Moutai vs. China Life Insurance | Kweichow Moutai vs. Cinda Securities Co | Kweichow Moutai vs. Piotech Inc A | Kweichow Moutai vs. Dongxing Sec Co |
| Yindu Kitchen vs. Industrial and Commercial | Yindu Kitchen vs. Kweichow Moutai Co | Yindu Kitchen vs. Agricultural Bank of | Yindu Kitchen vs. China Mobile Limited |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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