Correlation Between Shantou Wanshun and Vats Liquor
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By analyzing existing cross correlation between Shantou Wanshun Package and Vats Liquor Chain, you can compare the effects of market volatilities on Shantou Wanshun and Vats Liquor 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 Shantou Wanshun with a short position of Vats Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Vats Liquor.
Diversification Opportunities for Shantou Wanshun and Vats Liquor
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shantou and Vats is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and Vats Liquor Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vats Liquor Chain and Shantou Wanshun 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 Shantou Wanshun Package are associated (or correlated) with Vats Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vats Liquor Chain has no effect on the direction of Shantou Wanshun i.e., Shantou Wanshun and Vats Liquor go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Vats Liquor
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to under-perform the Vats Liquor. But the stock apears to be less risky and, when comparing its historical volatility, Shantou Wanshun Package is 1.75 times less risky than Vats Liquor. The stock trades about -0.42 of its potential returns per unit of risk. The Vats Liquor Chain is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 1,827 in Vats Liquor Chain on October 11, 2024 and sell it today you would lose (210.00) from holding Vats Liquor Chain or give up 11.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Vats Liquor Chain
Performance |
| Timeline |
| Shantou Wanshun Package |
| Vats Liquor Chain |
Shantou Wanshun and Vats Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Vats Liquor
The main advantage of trading using opposite Shantou Wanshun and Vats Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun position performs unexpectedly, Vats Liquor 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 Vats Liquor will offset losses from the drop in Vats Liquor's long position.| Shantou Wanshun vs. Guangdong Wens Foodstuff | Shantou Wanshun vs. New Hope Dairy | Shantou Wanshun vs. Anji Foodstuff Co | Shantou Wanshun vs. Beijing Sanyuan Foods |
| Vats Liquor vs. INKON Life Technology | Vats Liquor vs. Hygon Information Technology | Vats Liquor vs. Eyebright Medical Technology | Vats Liquor vs. Zhongfu 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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