Correlation Between Bank of XiAn and Kweichow Moutai
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By analyzing existing cross correlation between Bank of XiAn and Kweichow Moutai Co, you can compare the effects of market volatilities on Bank of XiAn and Kweichow Moutai 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 Bank of XiAn with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of XiAn and Kweichow Moutai.
Diversification Opportunities for Bank of XiAn and Kweichow Moutai
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Kweichow is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bank of XiAn and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Bank of XiAn 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 Bank of XiAn are associated (or correlated) with Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of Bank of XiAn i.e., Bank of XiAn and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Bank of XiAn and Kweichow Moutai
Assuming the 90 days trading horizon Bank of XiAn is expected to under-perform the Kweichow Moutai. In addition to that, Bank of XiAn is 1.45 times more volatile than Kweichow Moutai Co. It trades about -0.16 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.22 per unit of volatility. If you would invest 152,713 in Kweichow Moutai Co on October 20, 2024 and sell it today you would lose (7,238) from holding Kweichow Moutai Co or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of XiAn vs. Kweichow Moutai Co
Performance |
| Timeline |
| Bank of XiAn |
| Kweichow Moutai |
Bank of XiAn and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of XiAn and Kweichow Moutai
The main advantage of trading using opposite Bank of XiAn and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of XiAn position performs unexpectedly, Kweichow Moutai 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 Kweichow Moutai will offset losses from the drop in Kweichow Moutai's long position.| Bank of XiAn vs. Kweichow Moutai Co | Bank of XiAn vs. Contemporary Amperex Technology | Bank of XiAn vs. G bits Network Technology | Bank of XiAn vs. BYD Co Ltd |
| Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. Haima Automobile Group | Kweichow Moutai vs. Jiangsu Xinri E Vehicle | Kweichow Moutai vs. Jiangsu Phoenix Publishing |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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