Correlation Between Kweichow Moutai and Jiangxi JDL
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By analyzing existing cross correlation between Kweichow Moutai Co and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Kweichow Moutai and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Jiangxi JDL.
Diversification Opportunities for Kweichow Moutai and Jiangxi JDL
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Jiangxi is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Jiangxi JDL
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Jiangxi JDL. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.36 times less risky than Jiangxi JDL. The stock trades about -0.1 of its potential returns per unit of risk. The Jiangxi JDL Environmental is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,191 in Jiangxi JDL Environmental on August 29, 2024 and sell it today you would lose (42.00) from holding Jiangxi JDL Environmental or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Kweichow Moutai |
| Jiangxi JDL Environmental |
Kweichow Moutai and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Jiangxi JDL
The main advantage of trading using opposite Kweichow Moutai and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL's long position.| Kweichow Moutai vs. Huafa Industrial Co | Kweichow Moutai vs. Xinjiang Baodi Mining | Kweichow Moutai vs. Guangzhou Haozhi Industrial | Kweichow Moutai vs. Hainan Mining Co |
| Jiangxi JDL vs. Kontour Medical Technology | Jiangxi JDL vs. Sino Medical Sciences | Jiangxi JDL vs. Arrow Home Group | Jiangxi JDL vs. Cofoe Medical 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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