Correlation Between Kweichow Moutai and Wintao Communications
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By analyzing existing cross correlation between Kweichow Moutai Co and Wintao Communications Co, you can compare the effects of market volatilities on Kweichow Moutai and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Wintao Communications.
Diversification Opportunities for Kweichow Moutai and Wintao Communications
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Wintao is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Wintao Communications go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Wintao Communications
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Wintao Communications. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.88 times less risky than Wintao Communications. The stock trades about -0.04 of its potential returns per unit of risk. The Wintao Communications Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,216 in Wintao Communications Co on September 5, 2024 and sell it today you would earn a total of 360.00 from holding Wintao Communications Co or generate 16.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kweichow Moutai Co vs. Wintao Communications Co
Performance |
Timeline |
Kweichow Moutai |
Wintao Communications |
Kweichow Moutai and Wintao Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kweichow Moutai and Wintao Communications
The main advantage of trading using opposite Kweichow Moutai and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.Kweichow Moutai vs. Xiangtan Electrochemical Scientific | Kweichow Moutai vs. North Huajin Chemical | Kweichow Moutai vs. Xinjiang Zhongtai Chemical | Kweichow Moutai vs. Shenzhen SDG Information |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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