Correlation Between Kweichow Moutai and Dow Jones
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By analyzing existing cross correlation between Kweichow Moutai Co and Dow Jones Industrial, you can compare the effects of market volatilities on Kweichow Moutai and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Dow Jones.
Diversification Opportunities for Kweichow Moutai and Dow Jones
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Dow is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Dow Jones go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Dow Jones
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 3.68 times more return on investment than Dow Jones. However, Kweichow Moutai is 3.68 times more volatile than Dow Jones Industrial. It trades about 0.06 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.18 per unit of risk. If you would invest 138,900 in Kweichow Moutai Co on August 28, 2024 and sell it today you would earn a total of 10,957 from holding Kweichow Moutai Co or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Dow Jones Industrial
Performance |
| Timeline |
Kweichow Moutai and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Kweichow Moutai Co
Pair trading matchups for Kweichow Moutai
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Kweichow Moutai and Dow Jones
The main advantage of trading using opposite Kweichow Moutai and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Kweichow Moutai vs. Xiangyang Automobile Bearing | Kweichow Moutai vs. Northking Information Technology | Kweichow Moutai vs. Niutech Environment Technology | Kweichow Moutai vs. Western Superconducting Tech |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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