Correlation Between Kweichow Moutai and Biwin Storage
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By analyzing existing cross correlation between Kweichow Moutai Co and Biwin Storage Technology, you can compare the effects of market volatilities on Kweichow Moutai and Biwin Storage 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 Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Biwin Storage.
Diversification Opportunities for Kweichow Moutai and Biwin Storage
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Biwin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Biwin Storage Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biwin Storage Technology 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 Biwin Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biwin Storage Technology has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Biwin Storage go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Biwin Storage
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.41 times more return on investment than Biwin Storage. However, Kweichow Moutai Co is 2.45 times less risky than Biwin Storage. It trades about -0.1 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about -0.15 per unit of risk. If you would invest 156,500 in Kweichow Moutai Co on August 29, 2024 and sell it today you would lose (5,600) from holding Kweichow Moutai Co or give up 3.58% 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. Biwin Storage Technology
Performance |
| Timeline |
| Kweichow Moutai |
| Biwin Storage Technology |
Kweichow Moutai and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Biwin Storage
The main advantage of trading using opposite Kweichow Moutai and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Biwin Storage 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 Biwin Storage will offset losses from the drop in Biwin Storage's long position.| Kweichow Moutai vs. PetroChina Co Ltd | Kweichow Moutai vs. China Mobile Limited | Kweichow Moutai vs. Ping An Insurance | Kweichow Moutai vs. China Petroleum Chemical |
| Biwin Storage vs. China State Construction | Biwin Storage vs. Huafa Industrial Co | Biwin Storage vs. China International Capital | Biwin Storage vs. Kweichow Moutai Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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