Correlation Between Kweichow Moutai and Xingguang Agricultural
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By analyzing existing cross correlation between Kweichow Moutai Co and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Kweichow Moutai and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Xingguang Agricultural.
Diversification Opportunities for Kweichow Moutai and Xingguang Agricultural
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Xingguang is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Xingguang Agricultural
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.61 times more return on investment than Xingguang Agricultural. However, Kweichow Moutai Co is 1.64 times less risky than Xingguang Agricultural. It trades about 0.02 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about -0.03 per unit of risk. If you would invest 140,470 in Kweichow Moutai Co on November 4, 2024 and sell it today you would earn a total of 3,029 from holding Kweichow Moutai Co or generate 2.16% 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. Xingguang Agricultural Mach
Performance |
| Timeline |
| Kweichow Moutai |
| Xingguang Agricultural |
Kweichow Moutai and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Xingguang Agricultural
The main advantage of trading using opposite Kweichow Moutai and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural'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 |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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