Correlation Between Zhejiang Orient and Kweichow Moutai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Orient Gene and Kweichow Moutai Co, you can compare the effects of market volatilities on Zhejiang Orient 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 Zhejiang Orient with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Orient and Kweichow Moutai.
Diversification Opportunities for Zhejiang Orient and Kweichow Moutai
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Kweichow is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Orient Gene and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Zhejiang Orient 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 Zhejiang Orient Gene 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 Zhejiang Orient i.e., Zhejiang Orient and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Zhejiang Orient and Kweichow Moutai
Assuming the 90 days trading horizon Zhejiang Orient Gene is expected to under-perform the Kweichow Moutai. In addition to that, Zhejiang Orient is 1.65 times more volatile than Kweichow Moutai Co. It trades about -0.05 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.03 per unit of volatility. If you would invest 185,945 in Kweichow Moutai Co on October 20, 2024 and sell it today you would lose (40,470) from holding Kweichow Moutai Co or give up 21.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Orient Gene vs. Kweichow Moutai Co
Performance |
| Timeline |
| Zhejiang Orient Gene |
| Kweichow Moutai |
Zhejiang Orient and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Orient and Kweichow Moutai
The main advantage of trading using opposite Zhejiang Orient and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Orient 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.| Zhejiang Orient vs. Sichuan Hebang Biotechnology | Zhejiang Orient vs. Vats Liquor Chain | Zhejiang Orient vs. Air China Ltd | Zhejiang Orient vs. Jinhui Liquor Co |
| Kweichow Moutai vs. Sportsoul Co Ltd | Kweichow Moutai vs. Omnijoi Media Corp | Kweichow Moutai vs. CSSC Offshore Marine | Kweichow Moutai vs. Beijing Enlight Media |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |