Correlation Between Kweichow Moutai and Gotion High
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By analyzing existing cross correlation between Kweichow Moutai Co and Gotion High tech, you can compare the effects of market volatilities on Kweichow Moutai and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Gotion High.
Diversification Opportunities for Kweichow Moutai and Gotion High
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Gotion is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Gotion High go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Gotion High
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.71 times more return on investment than Gotion High. However, Kweichow Moutai Co is 1.41 times less risky than Gotion High. It trades about 0.08 of its potential returns per unit of risk. Gotion High tech is currently generating about -0.36 per unit of risk. If you would invest 149,857 in Kweichow Moutai Co on September 25, 2024 and sell it today you would earn a total of 2,788 from holding Kweichow Moutai Co or generate 1.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Kweichow Moutai Co vs. Gotion High tech
Performance |
Timeline |
Kweichow Moutai |
Gotion High tech |
Kweichow Moutai and Gotion High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kweichow Moutai and Gotion High
The main advantage of trading using opposite Kweichow Moutai and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High's long position.Kweichow Moutai vs. Beijing HuaYuanYiTong Thermal | Kweichow Moutai vs. Maxvision Technology Corp | Kweichow Moutai vs. Dongguan Aohai Technology | Kweichow Moutai vs. Chengtun Mining Group |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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