Correlation Between Kweichow Moutai and Guangdong Xiongsu
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By analyzing existing cross correlation between Kweichow Moutai Co and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Kweichow Moutai and Guangdong Xiongsu 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 Kweichow Moutai with a short position of Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Guangdong Xiongsu.
Diversification Opportunities for Kweichow Moutai and Guangdong Xiongsu
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Guangdong is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu and Kweichow Moutai 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 Kweichow Moutai Co are associated (or correlated) with Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Guangdong Xiongsu
Assuming the 90 days trading horizon Kweichow Moutai is expected to generate 3.77 times less return on investment than Guangdong Xiongsu. But when comparing it to its historical volatility, Kweichow Moutai Co is 1.97 times less risky than Guangdong Xiongsu. It trades about 0.08 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 502.00 in Guangdong Xiongsu Technology on September 24, 2024 and sell it today you would earn a total of 237.00 from holding Guangdong Xiongsu Technology or generate 47.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kweichow Moutai Co vs. Guangdong Xiongsu Technology
Performance |
Timeline |
Kweichow Moutai |
Guangdong Xiongsu |
Kweichow Moutai and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kweichow Moutai and Guangdong Xiongsu
The main advantage of trading using opposite Kweichow Moutai and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.Kweichow Moutai vs. China Satellite Communications | Kweichow Moutai vs. Shanghai Jinfeng Wine | Kweichow Moutai vs. Tonghua Grape Wine | Kweichow Moutai vs. Citic Guoan Wine |
Guangdong Xiongsu vs. Kweichow Moutai Co | Guangdong Xiongsu vs. Contemporary Amperex Technology | Guangdong Xiongsu vs. G bits Network Technology | Guangdong Xiongsu vs. BYD Co Ltd |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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