Correlation Between Kweichow Moutai and Xinya Electronic
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By analyzing existing cross correlation between Kweichow Moutai Co and Xinya Electronic Co, you can compare the effects of market volatilities on Kweichow Moutai and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Xinya Electronic.
Diversification Opportunities for Kweichow Moutai and Xinya Electronic
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kweichow and Xinya is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Xinya Electronic go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Xinya Electronic
Assuming the 90 days trading horizon Kweichow Moutai is expected to generate 24.04 times less return on investment than Xinya Electronic. But when comparing it to its historical volatility, Kweichow Moutai Co is 2.76 times less risky than Xinya Electronic. It trades about 0.03 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,324 in Xinya Electronic Co on September 29, 2024 and sell it today you would earn a total of 284.00 from holding Xinya Electronic Co or generate 21.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Xinya Electronic Co
Performance |
| Timeline |
| Kweichow Moutai |
| Xinya Electronic |
Kweichow Moutai and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Xinya Electronic
The main advantage of trading using opposite Kweichow Moutai and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Kweichow Moutai vs. Wasu Media Holding | Kweichow Moutai vs. Tongyu Communication | Kweichow Moutai vs. Runjian Communication Co | Kweichow Moutai vs. Shuhua Sports Co |
| Xinya Electronic vs. Sportsoul Co Ltd | Xinya Electronic vs. Sichuan Newsnet Media | Xinya Electronic vs. Guangzhou Jinyi Media | Xinya Electronic vs. Guangdong Jinma Entertainment |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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