Correlation Between Kweichow Moutai and Anji Microelectronics
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By analyzing existing cross correlation between Kweichow Moutai Co and Anji Microelectronics Tech, you can compare the effects of market volatilities on Kweichow Moutai and Anji Microelectronics 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 Anji Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Anji Microelectronics.
Diversification Opportunities for Kweichow Moutai and Anji Microelectronics
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Anji is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Anji Microelectronics Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Microelectronics 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 Anji Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anji Microelectronics has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Anji Microelectronics go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Anji Microelectronics
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.36 times more return on investment than Anji Microelectronics. However, Kweichow Moutai Co is 2.81 times less risky than Anji Microelectronics. It trades about -0.17 of its potential returns per unit of risk. Anji Microelectronics Tech is currently generating about -0.25 per unit of risk. If you would invest 159,801 in Kweichow Moutai Co on September 12, 2024 and sell it today you would lose (5,142) from holding Kweichow Moutai Co or give up 3.22% 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. Anji Microelectronics Tech
Performance |
| Timeline |
| Kweichow Moutai |
| Anji Microelectronics |
Kweichow Moutai and Anji Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Anji Microelectronics
The main advantage of trading using opposite Kweichow Moutai and Anji Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Anji Microelectronics 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 Anji Microelectronics will offset losses from the drop in Anji Microelectronics' long position.| Kweichow Moutai vs. Luyin Investment Group | Kweichow Moutai vs. Sichuan Fulin Transportation | Kweichow Moutai vs. Zhongshan Broad Ocean Motor | Kweichow Moutai vs. Southchip Semiconductor 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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