Correlation Between Kweichow Moutai and Shenwu Energy
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By analyzing existing cross correlation between Kweichow Moutai Co and Shenwu Energy Saving, you can compare the effects of market volatilities on Kweichow Moutai and Shenwu Energy 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 Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shenwu Energy.
Diversification Opportunities for Kweichow Moutai and Shenwu Energy
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Shenwu is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving 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 Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shenwu Energy go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shenwu Energy
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Shenwu Energy. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 6.68 times less risky than Shenwu Energy. The stock trades about -0.14 of its potential returns per unit of risk. The Shenwu Energy Saving is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 309.00 in Shenwu Energy Saving on November 4, 2024 and sell it today you would lose (9.00) from holding Shenwu Energy Saving or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shenwu Energy Saving
Performance |
| Timeline |
| Kweichow Moutai |
| Shenwu Energy Saving |
Kweichow Moutai and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shenwu Energy
The main advantage of trading using opposite Kweichow Moutai and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Kweichow Moutai vs. Shanghai Rongtai Health | Kweichow Moutai vs. Heren Health Co | Kweichow Moutai vs. De Rucci Healthy | Kweichow Moutai vs. Shandong Sanyuan Biotechnology |
| Shenwu Energy vs. Nanjing Putian Telecommunications | Shenwu Energy vs. Ping An Insurance | Shenwu Energy vs. Fiberhome Telecommunication Technologies | Shenwu Energy vs. Guangxi Wuzhou Communications |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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