Correlation Between Shandong Intco and Kweichow Moutai
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By analyzing existing cross correlation between Shandong Intco Medical and Kweichow Moutai Co, you can compare the effects of market volatilities on Shandong Intco 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 Shandong Intco with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Intco and Kweichow Moutai.
Diversification Opportunities for Shandong Intco and Kweichow Moutai
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Kweichow is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Intco Medical and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Shandong Intco 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 Shandong Intco Medical 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 Shandong Intco i.e., Shandong Intco and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Shandong Intco and Kweichow Moutai
Assuming the 90 days trading horizon Shandong Intco Medical is expected to generate 1.46 times more return on investment than Kweichow Moutai. However, Shandong Intco is 1.46 times more volatile than Kweichow Moutai Co. It trades about 0.01 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.04 per unit of risk. If you would invest 2,684 in Shandong Intco Medical on September 4, 2024 and sell it today you would lose (5.00) from holding Shandong Intco Medical or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Intco Medical vs. Kweichow Moutai Co
Performance |
| Timeline |
| Shandong Intco Medical |
| Kweichow Moutai |
Shandong Intco and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Intco and Kweichow Moutai
The main advantage of trading using opposite Shandong Intco and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Intco 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.| Shandong Intco vs. Kweichow Moutai Co | Shandong Intco vs. Contemporary Amperex Technology | Shandong Intco vs. G bits Network Technology | Shandong Intco vs. Beijing Roborock Technology |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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