Correlation Between Kweichow Moutai and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Kweichow Moutai Co and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Kweichow Moutai and SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and SUNSEA Telecommunicatio.
Diversification Opportunities for Kweichow Moutai and SUNSEA Telecommunicatio
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and SUNSEA is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Kweichow Moutai and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.45 times more return on investment than SUNSEA Telecommunicatio. However, Kweichow Moutai Co is 2.23 times less risky than SUNSEA Telecommunicatio. It trades about 0.0 of its potential returns per unit of risk. SUNSEA Telecommunications Co is currently generating about -0.1 per unit of risk. If you would invest 152,779 in Kweichow Moutai Co on September 1, 2024 and sell it today you would lose (205.00) from holding Kweichow Moutai Co or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Kweichow Moutai |
| SUNSEA Telecommunicatio |
Kweichow Moutai and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and SUNSEA Telecommunicatio
The main advantage of trading using opposite Kweichow Moutai and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio's long position.| Kweichow Moutai vs. Shenzhen Glory Medical | Kweichow Moutai vs. Qingdao Haier Biomedical | Kweichow Moutai vs. Winner Medical Co | Kweichow Moutai vs. Anhui Jianghuai Automobile |
| SUNSEA Telecommunicatio vs. Industrial and Commercial | SUNSEA Telecommunicatio vs. Kweichow Moutai Co | SUNSEA Telecommunicatio vs. Agricultural Bank of | SUNSEA Telecommunicatio vs. China Mobile Limited |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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