Correlation Between Kweichow Moutai and Shenzhen Clou
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By analyzing existing cross correlation between Kweichow Moutai Co and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Kweichow Moutai and Shenzhen Clou 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 Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shenzhen Clou.
Diversification Opportunities for Kweichow Moutai and Shenzhen Clou
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Shenzhen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shenzhen Clou
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Shenzhen Clou. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.31 times less risky than Shenzhen Clou. The stock trades about -0.1 of its potential returns per unit of risk. The Shenzhen Clou Electronics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 429.00 in Shenzhen Clou Electronics on August 29, 2024 and sell it today you would earn a total of 14.00 from holding Shenzhen Clou Electronics or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Kweichow Moutai |
| Shenzhen Clou Electronics |
Kweichow Moutai and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shenzhen Clou
The main advantage of trading using opposite Kweichow Moutai and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shenzhen Clou 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 Clou will offset losses from the drop in Shenzhen Clou's long position.| Kweichow Moutai vs. Huafa Industrial Co | Kweichow Moutai vs. Xinjiang Baodi Mining | Kweichow Moutai vs. Guangzhou Haozhi Industrial | Kweichow Moutai vs. Hainan Mining Co |
| Shenzhen Clou vs. Harbin Hatou Investment | Shenzhen Clou vs. Jointo Energy Investment | Shenzhen Clou vs. Xian International Medical | Shenzhen Clou vs. Cofoe Medical Technology |
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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