Correlation Between Kweichow Moutai and Juewei Food
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By analyzing existing cross correlation between Kweichow Moutai Co and Juewei Food Co, you can compare the effects of market volatilities on Kweichow Moutai and Juewei Food 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 Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Juewei Food.
Diversification Opportunities for Kweichow Moutai and Juewei Food
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Juewei is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food 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 Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Juewei Food go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Juewei Food
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.47 times more return on investment than Juewei Food. However, Kweichow Moutai Co is 2.15 times less risky than Juewei Food. It trades about -0.26 of its potential returns per unit of risk. Juewei Food Co is currently generating about -0.26 per unit of risk. If you would invest 152,500 in Kweichow Moutai Co on October 29, 2024 and sell it today you would lose (8,900) from holding Kweichow Moutai Co or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Juewei Food Co
Performance |
| Timeline |
| Kweichow Moutai |
| Juewei Food |
Kweichow Moutai and Juewei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Juewei Food
The main advantage of trading using opposite Kweichow Moutai and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food's long position.| Kweichow Moutai vs. Do Fluoride Chemicals Co | Kweichow Moutai vs. Porton Fine Chemicals | Kweichow Moutai vs. Guangzhou Zhujiang Brewery | Kweichow Moutai vs. Guangdong Wens Foodstuff |
| Juewei Food vs. Semiconductor Manufacturing Intl | Juewei Food vs. Citic Guoan Wine | Juewei Food vs. Jiangsu Jinling Sports | Juewei Food vs. Giantec Semiconductor Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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