Correlation Between Kweichow Moutai and Shandong Intco
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By analyzing existing cross correlation between Kweichow Moutai Co and Shandong Intco Medical, you can compare the effects of market volatilities on Kweichow Moutai and Shandong Intco 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 Shandong Intco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shandong Intco.
Diversification Opportunities for Kweichow Moutai and Shandong Intco
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Shandong is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shandong Intco Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Intco Medical 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 Shandong Intco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Intco Medical has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shandong Intco go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shandong Intco
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Shandong Intco. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.46 times less risky than Shandong Intco. The stock trades about -0.04 of its potential returns per unit of risk. The Shandong Intco Medical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,684 in Shandong Intco Medical on September 5, 2024 and sell it today you would lose (5.00) from holding Shandong Intco Medical or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shandong Intco Medical
Performance |
| Timeline |
| Kweichow Moutai |
| Shandong Intco Medical |
Kweichow Moutai and Shandong Intco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shandong Intco
The main advantage of trading using opposite Kweichow Moutai and Shandong Intco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shandong Intco 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 Shandong Intco will offset losses from the drop in Shandong Intco's long position.| Kweichow Moutai vs. Xiangtan Electrochemical Scientific | Kweichow Moutai vs. North Huajin Chemical | Kweichow Moutai vs. Xinjiang Zhongtai Chemical | Kweichow Moutai vs. Shenzhen SDG Information |
| Shandong Intco vs. Kweichow Moutai Co | Shandong Intco vs. Contemporary Amperex Technology | Shandong Intco vs. G bits Network Technology | Shandong Intco vs. Beijing Roborock 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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