Correlation Between China Everbright and Kweichow Moutai
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By analyzing existing cross correlation between China Everbright Bank and Kweichow Moutai Co, you can compare the effects of market volatilities on China Everbright 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 China Everbright with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Everbright and Kweichow Moutai.
Diversification Opportunities for China Everbright and Kweichow Moutai
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Kweichow is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding China Everbright Bank and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and China Everbright 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 China Everbright Bank 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 China Everbright i.e., China Everbright and Kweichow Moutai go up and down completely randomly.
Pair Corralation between China Everbright and Kweichow Moutai
Assuming the 90 days trading horizon China Everbright Bank is expected to generate 1.74 times more return on investment than Kweichow Moutai. However, China Everbright is 1.74 times more volatile than Kweichow Moutai Co. It trades about 0.03 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.25 per unit of risk. If you would invest 383.00 in China Everbright Bank on October 26, 2024 and sell it today you would earn a total of 4.00 from holding China Everbright Bank or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Everbright Bank vs. Kweichow Moutai Co
Performance |
| Timeline |
| China Everbright Bank |
| Kweichow Moutai |
China Everbright and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Everbright and Kweichow Moutai
The main advantage of trading using opposite China Everbright and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Everbright 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.| China Everbright vs. China Life Insurance | China Everbright vs. Cinda Securities Co | China Everbright vs. Piotech Inc A | China Everbright vs. Dongxing Sec Co |
| Kweichow Moutai vs. Cultural Investment Holdings | Kweichow Moutai vs. Jiangsu Yueda Investment | Kweichow Moutai vs. Beijing Jiaman Dress | Kweichow Moutai vs. Henan Shuanghui Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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