Correlation Between Kweichow Moutai and Hangzhou Pinming
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By analyzing existing cross correlation between Kweichow Moutai Co and Hangzhou Pinming Software, you can compare the effects of market volatilities on Kweichow Moutai and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Hangzhou Pinming.
Diversification Opportunities for Kweichow Moutai and Hangzhou Pinming
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Hangzhou is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Hangzhou Pinming
Assuming the 90 days trading horizon Kweichow Moutai is expected to generate 4.84 times less return on investment than Hangzhou Pinming. But when comparing it to its historical volatility, Kweichow Moutai Co is 2.9 times less risky than Hangzhou Pinming. It trades about 0.18 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,566 in Hangzhou Pinming Software on November 27, 2024 and sell it today you would earn a total of 394.00 from holding Hangzhou Pinming Software or generate 15.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Hangzhou Pinming Software
Performance |
| Timeline |
| Kweichow Moutai |
| Hangzhou Pinming Software |
Kweichow Moutai and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Hangzhou Pinming
The main advantage of trading using opposite Kweichow Moutai and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| Kweichow Moutai vs. Shengda Mining Co | Kweichow Moutai vs. Zijin Mining Group | Kweichow Moutai vs. Western Metal Materials | Kweichow Moutai vs. Universal Scientific Industrial |
| Hangzhou Pinming vs. Holitech Technology Co | Hangzhou Pinming vs. Gome Telecom Equipment | Hangzhou Pinming vs. Cultural Investment Holdings | Hangzhou Pinming vs. Danhua Chemical 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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