Correlation Between Hygon Information and Kweichow Moutai
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By analyzing existing cross correlation between Hygon Information Technology and Kweichow Moutai Co, you can compare the effects of market volatilities on Hygon Information 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 Hygon Information with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Kweichow Moutai.
Diversification Opportunities for Hygon Information and Kweichow Moutai
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hygon and Kweichow is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Hygon Information 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 Hygon Information Technology 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 Hygon Information i.e., Hygon Information and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Hygon Information and Kweichow Moutai
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 2.54 times more return on investment than Kweichow Moutai. However, Hygon Information is 2.54 times more volatile than Kweichow Moutai Co. It trades about 0.07 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.02 per unit of risk. If you would invest 4,759 in Hygon Information Technology on October 25, 2024 and sell it today you would earn a total of 8,488 from holding Hygon Information Technology or generate 178.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hygon Information Technology vs. Kweichow Moutai Co
Performance |
| Timeline |
| Hygon Information |
| Kweichow Moutai |
Hygon Information and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Kweichow Moutai
The main advantage of trading using opposite Hygon Information and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information 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.| Hygon Information vs. Zhongfu Information | Hygon Information vs. Guangdong TianYiMa Information | Hygon Information vs. Emdoor Information Co | Hygon Information vs. ButOne Information Corp |
| Kweichow Moutai vs. Southchip Semiconductor Technology | Kweichow Moutai vs. Yingde Greatchem Chemicals | Kweichow Moutai vs. Aba Chemicals Corp | Kweichow Moutai vs. Easyhome New Retail |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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