Correlation Between Kweichow Moutai and Shaanxi Yanchang
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By analyzing existing cross correlation between Kweichow Moutai Co and Shaanxi Yanchang Petroleum, you can compare the effects of market volatilities on Kweichow Moutai and Shaanxi Yanchang 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 Shaanxi Yanchang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shaanxi Yanchang.
Diversification Opportunities for Kweichow Moutai and Shaanxi Yanchang
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kweichow and Shaanxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shaanxi Yanchang Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Yanchang Pet 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 Shaanxi Yanchang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Yanchang Pet has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shaanxi Yanchang go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shaanxi Yanchang
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.76 times more return on investment than Shaanxi Yanchang. However, Kweichow Moutai Co is 1.31 times less risky than Shaanxi Yanchang. It trades about -0.08 of its potential returns per unit of risk. Shaanxi Yanchang Petroleum is currently generating about -0.09 per unit of risk. If you would invest 153,375 in Kweichow Moutai Co on November 1, 2024 and sell it today you would lose (9,876) from holding Kweichow Moutai Co or give up 6.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shaanxi Yanchang Petroleum
Performance |
| Timeline |
| Kweichow Moutai |
| Shaanxi Yanchang Pet |
Kweichow Moutai and Shaanxi Yanchang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shaanxi Yanchang
The main advantage of trading using opposite Kweichow Moutai and Shaanxi Yanchang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shaanxi Yanchang 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 Shaanxi Yanchang will offset losses from the drop in Shaanxi Yanchang's long position.| Kweichow Moutai vs. Xiwang Foodstuffs Co | Kweichow Moutai vs. Anji Foodstuff Co | Kweichow Moutai vs. Kidswant Children Products | Kweichow Moutai vs. Beingmate Baby Child |
| Shaanxi Yanchang vs. Industrial and Commercial | Shaanxi Yanchang vs. China Construction Bank | Shaanxi Yanchang vs. Agricultural Bank of | Shaanxi Yanchang vs. Bank of China |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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