Correlation Between Kweichow Moutai and Shenzhen Silver
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By analyzing existing cross correlation between Kweichow Moutai Co and Shenzhen Silver Basis, you can compare the effects of market volatilities on Kweichow Moutai and Shenzhen Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shenzhen Silver.
Diversification Opportunities for Kweichow Moutai and Shenzhen Silver
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Shenzhen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shenzhen Silver
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.42 times more return on investment than Shenzhen Silver. However, Kweichow Moutai Co is 2.39 times less risky than Shenzhen Silver. It trades about 0.11 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.12 per unit of risk. If you would invest 149,857 in Kweichow Moutai Co on September 26, 2024 and sell it today you would earn a total of 4,025 from holding Kweichow Moutai Co or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Kweichow Moutai |
| Shenzhen Silver Basis |
Kweichow Moutai and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shenzhen Silver
The main advantage of trading using opposite Kweichow Moutai and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver's long position.| Kweichow Moutai vs. China Life Insurance | Kweichow Moutai vs. Beijing Wandong Medical | Kweichow Moutai vs. Allmed Medical Products | Kweichow Moutai vs. Lootom Telcovideo Network |
| Shenzhen Silver vs. Bank of China | Shenzhen Silver vs. Kweichow Moutai Co | Shenzhen Silver vs. PetroChina Co Ltd | Shenzhen Silver vs. Bank of Communications |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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