Correlation Between Kweichow Moutai and Shenzhen Hifuture
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By analyzing existing cross correlation between Kweichow Moutai Co and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Kweichow Moutai and Shenzhen Hifuture 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 Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shenzhen Hifuture.
Diversification Opportunities for Kweichow Moutai and Shenzhen Hifuture
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kweichow and Shenzhen is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shenzhen Hifuture
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Shenzhen Hifuture. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.9 times less risky than Shenzhen Hifuture. The stock trades about -0.02 of its potential returns per unit of risk. The Shenzhen Hifuture Electric is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 243.00 in Shenzhen Hifuture Electric on September 3, 2024 and sell it today you would earn a total of 40.00 from holding Shenzhen Hifuture Electric or generate 16.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Kweichow Moutai |
| Shenzhen Hifuture |
Kweichow Moutai and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shenzhen Hifuture
The main advantage of trading using opposite Kweichow Moutai and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shenzhen Hifuture 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 Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Kweichow Moutai vs. China Railway Materials | Kweichow Moutai vs. Peoples Insurance of | Kweichow Moutai vs. Jinsanjiang Silicon Material | Kweichow Moutai vs. Guangdong Jingyi Metal |
| Shenzhen Hifuture vs. Wuhan Yangtze Communication | Shenzhen Hifuture vs. Holitech Technology Co | Shenzhen Hifuture vs. Shenzhen Kexin Communication | Shenzhen Hifuture vs. Saurer Intelligent 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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