Correlation Between Kweichow Moutai and Qingdao Haier
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Kweichow Moutai and Qingdao Haier 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 Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Qingdao Haier.
Diversification Opportunities for Kweichow Moutai and Qingdao Haier
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Qingdao is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Qingdao Haier Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Haier Biomedical 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 Qingdao Haier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Haier Biomedical has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Qingdao Haier go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Qingdao Haier
Assuming the 90 days trading horizon Kweichow Moutai is expected to generate 82.11 times less return on investment than Qingdao Haier. But when comparing it to its historical volatility, Kweichow Moutai Co is 1.93 times less risky than Qingdao Haier. It trades about 0.0 of its potential returns per unit of risk. Qingdao Haier Biomedical is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,101 in Qingdao Haier Biomedical on September 1, 2024 and sell it today you would earn a total of 227.00 from holding Qingdao Haier Biomedical or generate 7.32% 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. Qingdao Haier Biomedical
Performance |
| Timeline |
| Kweichow Moutai |
| Qingdao Haier Biomedical |
Kweichow Moutai and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Qingdao Haier
The main advantage of trading using opposite Kweichow Moutai and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Qingdao Haier 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 Qingdao Haier will offset losses from the drop in Qingdao Haier's long position.| Kweichow Moutai vs. Shenzhen Glory Medical | Kweichow Moutai vs. Qingdao Haier Biomedical | Kweichow Moutai vs. Winner Medical Co | Kweichow Moutai vs. Anhui Jianghuai Automobile |
| Qingdao Haier vs. Nanjing Putian Telecommunications | Qingdao Haier vs. Shenzhen Hifuture Electric | Qingdao Haier vs. Tianjin Realty Development | Qingdao Haier vs. Shenyang Huitian Thermal |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |