Correlation Between Kweichow Moutai and Guangdong Shenglu
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By analyzing existing cross correlation between Kweichow Moutai Co and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Kweichow Moutai and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Guangdong Shenglu.
Diversification Opportunities for Kweichow Moutai and Guangdong Shenglu
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Guangdong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Guangdong Shenglu
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.37 times more return on investment than Guangdong Shenglu. However, Kweichow Moutai Co is 2.71 times less risky than Guangdong Shenglu. It trades about 0.08 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.02 per unit of risk. If you would invest 145,475 in Kweichow Moutai Co on November 18, 2024 and sell it today you would earn a total of 2,025 from holding Kweichow Moutai Co or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Kweichow Moutai |
| Guangdong Shenglu |
Kweichow Moutai and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Guangdong Shenglu
The main advantage of trading using opposite Kweichow Moutai and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Kweichow Moutai vs. HaiXin Foods Co | Kweichow Moutai vs. Anji Foodstuff Co | Kweichow Moutai vs. Jiajia Food Group | Kweichow Moutai vs. New Hope Dairy |
| Guangdong Shenglu vs. Peoples Insurance of | Guangdong Shenglu vs. Hua Xia Bank | Guangdong Shenglu vs. Postal Savings Bank | Guangdong Shenglu vs. Hainan Airlines 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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