Correlation Between Industrial Bank and Kweichow Moutai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial Bank Co and Kweichow Moutai Co, you can compare the effects of market volatilities on Industrial Bank 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 Industrial Bank with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Kweichow Moutai.
Diversification Opportunities for Industrial Bank and Kweichow Moutai
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Industrial and Kweichow is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Industrial Bank 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 Industrial Bank Co 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 Industrial Bank i.e., Industrial Bank and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Industrial Bank and Kweichow Moutai
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.94 times more return on investment than Kweichow Moutai. However, Industrial Bank Co is 1.07 times less risky than Kweichow Moutai. It trades about 0.26 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about 0.08 per unit of risk. If you would invest 1,776 in Industrial Bank Co on September 25, 2024 and sell it today you would earn a total of 106.00 from holding Industrial Bank Co or generate 5.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Industrial Bank Co vs. Kweichow Moutai Co
Performance |
Timeline |
Industrial Bank |
Kweichow Moutai |
Industrial Bank and Kweichow Moutai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Industrial Bank and Kweichow Moutai
The main advantage of trading using opposite Industrial Bank and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank 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.Industrial Bank vs. Meinian Onehealth Healthcare | Industrial Bank vs. Grandblue Environment Co | Industrial Bank vs. Dezhan HealthCare Co | Industrial Bank vs. Baoshan Iron Steel |
Kweichow Moutai vs. Beijing HuaYuanYiTong Thermal | Kweichow Moutai vs. Maxvision Technology Corp | Kweichow Moutai vs. Dongguan Aohai Technology | Kweichow Moutai vs. Chengtun Mining Group |
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.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |