Correlation Between Kweichow Moutai and ShenZhen Yitoa
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By analyzing existing cross correlation between Kweichow Moutai Co and ShenZhen Yitoa Intelligent, you can compare the effects of market volatilities on Kweichow Moutai and ShenZhen Yitoa 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 Yitoa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and ShenZhen Yitoa.
Diversification Opportunities for Kweichow Moutai and ShenZhen Yitoa
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and ShenZhen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and ShenZhen Yitoa Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ShenZhen Yitoa Intel 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 Yitoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ShenZhen Yitoa Intel has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and ShenZhen Yitoa go up and down completely randomly.
Pair Corralation between Kweichow Moutai and ShenZhen Yitoa
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the ShenZhen Yitoa. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.53 times less risky than ShenZhen Yitoa. The stock trades about -0.1 of its potential returns per unit of risk. The ShenZhen Yitoa Intelligent is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 754.00 in ShenZhen Yitoa Intelligent on August 29, 2024 and sell it today you would earn a total of 112.00 from holding ShenZhen Yitoa Intelligent or generate 14.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. ShenZhen Yitoa Intelligent
Performance |
| Timeline |
| Kweichow Moutai |
| ShenZhen Yitoa Intel |
Kweichow Moutai and ShenZhen Yitoa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and ShenZhen Yitoa
The main advantage of trading using opposite Kweichow Moutai and ShenZhen Yitoa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, ShenZhen Yitoa 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 Yitoa will offset losses from the drop in ShenZhen Yitoa's long position.| Kweichow Moutai vs. Huafa Industrial Co | Kweichow Moutai vs. Xinjiang Baodi Mining | Kweichow Moutai vs. Guangzhou Haozhi Industrial | Kweichow Moutai vs. Hainan Mining Co |
| ShenZhen Yitoa vs. Nanjing Putian Telecommunications | ShenZhen Yitoa vs. Shenzhen Hifuture Electric | ShenZhen Yitoa vs. Shenyang Huitian Thermal | ShenZhen Yitoa vs. Jiangsu Xinning Modern |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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