Correlation Between Jinhui Mining and Kweichow Moutai
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By analyzing existing cross correlation between Jinhui Mining Co and Kweichow Moutai Co, you can compare the effects of market volatilities on Jinhui Mining 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 Jinhui Mining with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Kweichow Moutai.
Diversification Opportunities for Jinhui Mining and Kweichow Moutai
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhui and Kweichow is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Jinhui Mining 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 Jinhui Mining Co 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 Jinhui Mining i.e., Jinhui Mining and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Jinhui Mining and Kweichow Moutai
Assuming the 90 days trading horizon Jinhui Mining Co is expected to under-perform the Kweichow Moutai. In addition to that, Jinhui Mining is 1.24 times more volatile than Kweichow Moutai Co. It trades about -0.09 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.04 per unit of volatility. If you would invest 154,820 in Kweichow Moutai Co on September 4, 2024 and sell it today you would lose (2,146) from holding Kweichow Moutai Co or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Kweichow Moutai Co
Performance |
| Timeline |
| Jinhui Mining |
| Kweichow Moutai |
Jinhui Mining and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Kweichow Moutai
The main advantage of trading using opposite Jinhui Mining and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining 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.| Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Wanhua Chemical Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui Mining vs. Shandong Gold Mining |
| Kweichow Moutai vs. Chengtun Mining Group | Kweichow Moutai vs. Chenzhou Jingui Silver | Kweichow Moutai vs. Guangdong Silvere Sci | Kweichow Moutai vs. Jinhui Mining 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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