Correlation Between Kweichow Moutai and Hunan Fangsheng
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By analyzing existing cross correlation between Kweichow Moutai Co and Hunan Fangsheng Pharm, you can compare the effects of market volatilities on Kweichow Moutai and Hunan Fangsheng 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 Hunan Fangsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Hunan Fangsheng.
Diversification Opportunities for Kweichow Moutai and Hunan Fangsheng
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Hunan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Hunan Fangsheng Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Fangsheng Pharm 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 Hunan Fangsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Fangsheng Pharm has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Hunan Fangsheng go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Hunan Fangsheng
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.38 times more return on investment than Hunan Fangsheng. However, Kweichow Moutai Co is 2.6 times less risky than Hunan Fangsheng. It trades about -0.14 of its potential returns per unit of risk. Hunan Fangsheng Pharm is currently generating about -0.16 per unit of risk. If you would invest 157,720 in Kweichow Moutai Co on September 13, 2024 and sell it today you would lose (4,160) from holding Kweichow Moutai Co or give up 2.64% 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. Hunan Fangsheng Pharm
Performance |
| Timeline |
| Kweichow Moutai |
| Hunan Fangsheng Pharm |
Kweichow Moutai and Hunan Fangsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Hunan Fangsheng
The main advantage of trading using opposite Kweichow Moutai and Hunan Fangsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Hunan Fangsheng 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 Hunan Fangsheng will offset losses from the drop in Hunan Fangsheng's long position.| Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. China Sports Industry | Kweichow Moutai vs. Shuhua Sports Co | Kweichow Moutai vs. Jiangsu Jinling Sports |
| Hunan Fangsheng vs. BeiGene | Hunan Fangsheng vs. Kweichow Moutai Co | Hunan Fangsheng vs. Beijing Roborock Technology | Hunan Fangsheng vs. G bits Network Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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