Correlation Between Kweichow Moutai and Shijiazhuang Yiling
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By analyzing existing cross correlation between Kweichow Moutai Co and Shijiazhuang Yiling Pharmaceutical, you can compare the effects of market volatilities on Kweichow Moutai and Shijiazhuang Yiling 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 Shijiazhuang Yiling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shijiazhuang Yiling.
Diversification Opportunities for Kweichow Moutai and Shijiazhuang Yiling
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Shijiazhuang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shijiazhuang Yiling Pharmaceut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Yiling 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 Shijiazhuang Yiling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Yiling has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shijiazhuang Yiling go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shijiazhuang Yiling
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Shijiazhuang Yiling. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.4 times less risky than Shijiazhuang Yiling. The stock trades about -0.14 of its potential returns per unit of risk. The Shijiazhuang Yiling Pharmaceutical is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,772 in Shijiazhuang Yiling Pharmaceutical on September 15, 2024 and sell it today you would lose (44.00) from holding Shijiazhuang Yiling Pharmaceutical or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shijiazhuang Yiling Pharmaceut
Performance |
| Timeline |
| Kweichow Moutai |
| Shijiazhuang Yiling |
Kweichow Moutai and Shijiazhuang Yiling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shijiazhuang Yiling
The main advantage of trading using opposite Kweichow Moutai and Shijiazhuang Yiling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shijiazhuang Yiling 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 Shijiazhuang Yiling will offset losses from the drop in Shijiazhuang Yiling's long position.| Kweichow Moutai vs. Huasi Agricultural Development | Kweichow Moutai vs. Long Yuan Construction | Kweichow Moutai vs. Xingguang Agricultural Mach | Kweichow Moutai vs. Zhongzhu Medical Holdings |
| Shijiazhuang Yiling vs. BeiGene | Shijiazhuang Yiling vs. Kweichow Moutai Co | Shijiazhuang Yiling vs. Beijing Roborock Technology | Shijiazhuang Yiling vs. G bits Network 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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