Correlation Between Kweichow Moutai and ACM Research
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By analyzing existing cross correlation between Kweichow Moutai Co and ACM Research Shanghai, you can compare the effects of market volatilities on Kweichow Moutai and ACM Research 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 ACM Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and ACM Research.
Diversification Opportunities for Kweichow Moutai and ACM Research
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and ACM is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and ACM Research Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACM Research Shanghai 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 ACM Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACM Research Shanghai has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and ACM Research go up and down completely randomly.
Pair Corralation between Kweichow Moutai and ACM Research
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.71 times more return on investment than ACM Research. However, Kweichow Moutai Co is 1.41 times less risky than ACM Research. It trades about -0.26 of its potential returns per unit of risk. ACM Research Shanghai is currently generating about -0.41 per unit of risk. If you would invest 151,900 in Kweichow Moutai Co on October 14, 2024 and sell it today you would lose (8,300) from holding Kweichow Moutai Co or give up 5.46% 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. ACM Research Shanghai
Performance |
| Timeline |
| Kweichow Moutai |
| ACM Research Shanghai |
Kweichow Moutai and ACM Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and ACM Research
The main advantage of trading using opposite Kweichow Moutai and ACM Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, ACM Research 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 ACM Research will offset losses from the drop in ACM Research's long position.| Kweichow Moutai vs. GigaDevice SemiconductorBeiji | Kweichow Moutai vs. Bloomage Biotechnology Corp | Kweichow Moutai vs. Jinhe Biotechnology Co | Kweichow Moutai vs. Fujian Wanchen Biotechnology |
| ACM Research vs. Shuhua Sports Co | ACM Research vs. Guosheng Financial Holding | ACM Research vs. Shanghai Yaoji Playing | ACM Research vs. Postal Savings Bank |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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