Correlation Between Kweichow Moutai and Jiangsu Xinri
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By analyzing existing cross correlation between Kweichow Moutai Co and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Kweichow Moutai and Jiangsu Xinri 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 Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Jiangsu Xinri.
Diversification Opportunities for Kweichow Moutai and Jiangsu Xinri
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Jiangsu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Jiangsu Xinri
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.58 times more return on investment than Jiangsu Xinri. However, Kweichow Moutai Co is 1.73 times less risky than Jiangsu Xinri. It trades about -0.01 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.03 per unit of risk. If you would invest 173,820 in Kweichow Moutai Co on September 5, 2024 and sell it today you would lose (21,146) from holding Kweichow Moutai Co or give up 12.17% 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 Xinri E Vehicle
Performance |
| Timeline |
| Kweichow Moutai |
| Jiangsu Xinri E |
Kweichow Moutai and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Jiangsu Xinri
The main advantage of trading using opposite Kweichow Moutai and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Jiangsu Xinri 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 Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Kweichow Moutai vs. Xiangtan Electrochemical Scientific | Kweichow Moutai vs. North Huajin Chemical | Kweichow Moutai vs. Xinjiang Zhongtai Chemical | Kweichow Moutai vs. Shenzhen SDG Information |
| Jiangsu Xinri vs. Ningxia Younglight Chemicals | Jiangsu Xinri vs. Ningxia Building Materials | Jiangsu Xinri vs. Xilong Chemical Co | Jiangsu Xinri vs. Jilin Chemical Fibre |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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