Correlation Between Kweichow Moutai and Shenzhen Changfang
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By analyzing existing cross correlation between Kweichow Moutai Co and Shenzhen Changfang Light, you can compare the effects of market volatilities on Kweichow Moutai and Shenzhen Changfang 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 Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shenzhen Changfang.
Diversification Opportunities for Kweichow Moutai and Shenzhen Changfang
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Shenzhen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light 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 Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shenzhen Changfang
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Shenzhen Changfang. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.29 times less risky than Shenzhen Changfang. The stock trades about -0.02 of its potential returns per unit of risk. The Shenzhen Changfang Light is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 166.00 in Shenzhen Changfang Light on September 26, 2024 and sell it today you would earn a total of 4.00 from holding Shenzhen Changfang Light or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shenzhen Changfang Light
Performance |
| Timeline |
| Kweichow Moutai |
| Shenzhen Changfang Light |
Kweichow Moutai and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shenzhen Changfang
The main advantage of trading using opposite Kweichow Moutai and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shenzhen Changfang 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 Changfang will offset losses from the drop in Shenzhen Changfang'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 Changfang vs. Kweichow Moutai Co | Shenzhen Changfang vs. Contemporary Amperex Technology | Shenzhen Changfang vs. G bits Network Technology | Shenzhen Changfang vs. BYD Co Ltd |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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