Correlation Between Kweichow Moutai and Shenzhen Coship
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Shenzhen Coship Electronics, you can compare the effects of market volatilities on Kweichow Moutai and Shenzhen Coship 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 Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shenzhen Coship.
Diversification Opportunities for Kweichow Moutai and Shenzhen Coship
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kweichow and Shenzhen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec 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 Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shenzhen Coship go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shenzhen Coship
Assuming the 90 days trading horizon Kweichow Moutai is expected to generate 28.8 times less return on investment than Shenzhen Coship. But when comparing it to its historical volatility, Kweichow Moutai Co is 1.89 times less risky than Shenzhen Coship. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Coship Electronics is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 144.00 in Shenzhen Coship Electronics on October 25, 2024 and sell it today you would earn a total of 522.00 from holding Shenzhen Coship Electronics or generate 362.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shenzhen Coship Electronics
Performance |
| Timeline |
| Kweichow Moutai |
| Shenzhen Coship Elec |
Kweichow Moutai and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shenzhen Coship
The main advantage of trading using opposite Kweichow Moutai and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shenzhen Coship 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 Coship will offset losses from the drop in Shenzhen Coship's long position.| Kweichow Moutai vs. Southchip Semiconductor Technology | Kweichow Moutai vs. Yingde Greatchem Chemicals | Kweichow Moutai vs. Aba Chemicals Corp | Kweichow Moutai vs. Easyhome New Retail |
| Shenzhen Coship vs. Jiahe Foods Industry | Shenzhen Coship vs. Gan Yuan Foods | Shenzhen Coship vs. XinJiang GuoTong Pipeline | Shenzhen Coship vs. Great Sun Foods Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |