Correlation Between Kweichow Moutai and Shenzhen Centralcon
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By analyzing existing cross correlation between Kweichow Moutai Co and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Kweichow Moutai and Shenzhen Centralcon 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 Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shenzhen Centralcon.
Diversification Opportunities for Kweichow Moutai and Shenzhen Centralcon
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon 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 Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shenzhen Centralcon
Assuming the 90 days trading horizon Kweichow Moutai is expected to generate 2.42 times less return on investment than Shenzhen Centralcon. But when comparing it to its historical volatility, Kweichow Moutai Co is 1.39 times less risky than Shenzhen Centralcon. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 398.00 in Shenzhen Centralcon Investment on August 25, 2024 and sell it today you would earn a total of 105.00 from holding Shenzhen Centralcon Investment or generate 26.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Kweichow Moutai |
| Shenzhen Centralcon |
Kweichow Moutai and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shenzhen Centralcon
The main advantage of trading using opposite Kweichow Moutai and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Kweichow Moutai vs. State Grid InformationCommunication | Kweichow Moutai vs. CICT Mobile Communication | Kweichow Moutai vs. Western Mining Co | Kweichow Moutai vs. Allwin Telecommunication Co |
| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
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 CEOs Directory module to screen CEOs from public companies around the world.
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