Correlation Between Kweichow Moutai and Hygon Information
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By analyzing existing cross correlation between Kweichow Moutai Co and Hygon Information Technology, you can compare the effects of market volatilities on Kweichow Moutai and Hygon Information 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 Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Hygon Information.
Diversification Opportunities for Kweichow Moutai and Hygon Information
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Hygon is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information 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 Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Hygon Information go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Hygon Information
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Hygon Information. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.77 times less risky than Hygon Information. The stock trades about -0.02 of its potential returns per unit of risk. The Hygon Information Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 7,055 in Hygon Information Technology on August 24, 2024 and sell it today you would earn a total of 5,795 from holding Hygon Information Technology or generate 82.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Hygon Information Technology
Performance |
| Timeline |
| Kweichow Moutai |
| Hygon Information |
Kweichow Moutai and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Hygon Information
The main advantage of trading using opposite Kweichow Moutai and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Kweichow Moutai vs. Ligao Foods CoLtd | Kweichow Moutai vs. Elite Color Environmental | Kweichow Moutai vs. Namchow Food Group | Kweichow Moutai vs. Yankershop Food Co |
| Hygon Information vs. BeiGene | Hygon Information vs. Kweichow Moutai Co | Hygon Information vs. Beijing Roborock Technology | Hygon Information 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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