Correlation Between Kweichow Moutai and Kangping Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Kangping Technology Co, you can compare the effects of market volatilities on Kweichow Moutai and Kangping Technology 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 Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Kangping Technology.
Diversification Opportunities for Kweichow Moutai and Kangping Technology
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Kangping is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology 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 Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Kangping Technology go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Kangping Technology
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.56 times more return on investment than Kangping Technology. However, Kweichow Moutai Co is 1.78 times less risky than Kangping Technology. It trades about 0.04 of its potential returns per unit of risk. Kangping Technology Co is currently generating about 0.0 per unit of risk. If you would invest 150,782 in Kweichow Moutai Co on September 23, 2024 and sell it today you would earn a total of 1,418 from holding Kweichow Moutai Co or generate 0.94% 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. Kangping Technology Co
Performance |
Timeline |
Kweichow Moutai |
Kangping Technology |
Kweichow Moutai and Kangping Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kweichow Moutai and Kangping Technology
The main advantage of trading using opposite Kweichow Moutai and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.Kweichow Moutai vs. PetroChina Co Ltd | Kweichow Moutai vs. China Mobile Limited | Kweichow Moutai vs. CNOOC Limited | Kweichow Moutai vs. Ping An Insurance |
Kangping Technology vs. Kweichow Moutai Co | Kangping Technology vs. Contemporary Amperex Technology | Kangping Technology vs. G bits Network Technology | Kangping Technology 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |