Correlation Between Kweichow Moutai and Shenzhen Topway
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By analyzing existing cross correlation between Kweichow Moutai Co and Shenzhen Topway Video, you can compare the effects of market volatilities on Kweichow Moutai and Shenzhen Topway 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 Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shenzhen Topway.
Diversification Opportunities for Kweichow Moutai and Shenzhen Topway
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Shenzhen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video 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 Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shenzhen Topway
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Shenzhen Topway. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 5.38 times less risky than Shenzhen Topway. The stock trades about -0.17 of its potential returns per unit of risk. The Shenzhen Topway Video is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 948.00 in Shenzhen Topway Video on September 12, 2024 and sell it today you would earn a total of 95.00 from holding Shenzhen Topway Video or generate 10.02% 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 Topway Video
Performance |
| Timeline |
| Kweichow Moutai |
| Shenzhen Topway Video |
Kweichow Moutai and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shenzhen Topway
The main advantage of trading using opposite Kweichow Moutai and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shenzhen Topway 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 Topway will offset losses from the drop in Shenzhen Topway's long position.| Kweichow Moutai vs. Luyin Investment Group | Kweichow Moutai vs. Sichuan Fulin Transportation | Kweichow Moutai vs. Zhongshan Broad Ocean Motor | Kweichow Moutai vs. Southchip Semiconductor Technology |
| Shenzhen Topway vs. Kweichow Moutai Co | Shenzhen Topway vs. Shenzhen Mindray Bio Medical | Shenzhen Topway vs. G bits Network Technology | Shenzhen Topway vs. Beijing Roborock 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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