Correlation Between Kweichow Moutai and Shandong
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By analyzing existing cross correlation between Kweichow Moutai Co and Shandong Hi Speed RoadBridge, you can compare the effects of market volatilities on Kweichow Moutai and Shandong 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 Shandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shandong.
Diversification Opportunities for Kweichow Moutai and Shandong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kweichow and Shandong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shandong Hi Speed RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hi Speed 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 Shandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hi Speed has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shandong go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shandong
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Shandong. In addition to that, Kweichow Moutai is 1.0 times more volatile than Shandong Hi Speed RoadBridge. It trades about -0.18 of its total potential returns per unit of risk. Shandong Hi Speed RoadBridge is currently generating about -0.06 per unit of volatility. If you would invest 581.00 in Shandong Hi Speed RoadBridge on November 3, 2024 and sell it today you would lose (7.00) from holding Shandong Hi Speed RoadBridge or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shandong Hi Speed RoadBridge
Performance |
| Timeline |
| Kweichow Moutai |
| Shandong Hi Speed |
Kweichow Moutai and Shandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shandong
The main advantage of trading using opposite Kweichow Moutai and Shandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shandong 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 Shandong will offset losses from the drop in Shandong's long position.| Kweichow Moutai vs. GRG Banking Equipment | Kweichow Moutai vs. Citic Offshore Helicopter | Kweichow Moutai vs. GigaDevice SemiconductorBeiji | Kweichow Moutai vs. Ping An Insurance |
| Shandong vs. Xinhua Winshare Publishing | Shandong vs. Hainan Mining Co | Shandong vs. Offcn Education Technology | Shandong vs. Zhengzhou Coal Mining |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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