Correlation Between Kweichow Moutai and Holike
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By analyzing existing cross correlation between Kweichow Moutai Co and Holike, you can compare the effects of market volatilities on Kweichow Moutai and Holike 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 Holike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Holike.
Diversification Opportunities for Kweichow Moutai and Holike
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Holike is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Holike in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holike 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 Holike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holike has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Holike go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Holike
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Holike. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.49 times less risky than Holike. The stock trades about -0.01 of its potential returns per unit of risk. The Holike is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 840.00 in Holike on September 2, 2024 and sell it today you would earn a total of 200.00 from holding Holike or generate 23.81% 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. Holike
Performance |
| Timeline |
| Kweichow Moutai |
| Holike |
Kweichow Moutai and Holike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Holike
The main advantage of trading using opposite Kweichow Moutai and Holike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Holike 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 Holike will offset losses from the drop in Holike's long position.| Kweichow Moutai vs. Caihong Display Devices | Kweichow Moutai vs. Ningxia Building Materials | Kweichow Moutai vs. Guangzhou Tinci Materials | Kweichow Moutai vs. Cultural Investment Holdings |
| Holike vs. Kweichow Moutai Co | Holike vs. NAURA Technology Group | Holike vs. Zhejiang Orient Gene | Holike vs. APT Medical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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