Correlation Between Kweichow Moutai and Shanghai Yaoji
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By analyzing existing cross correlation between Kweichow Moutai Co and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Kweichow Moutai and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shanghai Yaoji.
Diversification Opportunities for Kweichow Moutai and Shanghai Yaoji
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Shanghai is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shanghai Yaoji
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Shanghai Yaoji. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 5.69 times less risky than Shanghai Yaoji. The stock trades about -0.17 of its potential returns per unit of risk. The Shanghai Yaoji Playing is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,840 in Shanghai Yaoji Playing on September 12, 2024 and sell it today you would earn a total of 604.00 from holding Shanghai Yaoji Playing or generate 21.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| Kweichow Moutai |
| Shanghai Yaoji Playing |
Kweichow Moutai and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shanghai Yaoji
The main advantage of trading using opposite Kweichow Moutai and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji'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 |
| Shanghai Yaoji vs. China Satellite Communications | Shanghai Yaoji vs. By health | Shanghai Yaoji vs. Yunnan Jianzhijia Health Chain | Shanghai Yaoji vs. China World Trade |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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