Correlation Between Kweichow Moutai and Shandong Homey
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By analyzing existing cross correlation between Kweichow Moutai Co and Shandong Homey Aquatic, you can compare the effects of market volatilities on Kweichow Moutai and Shandong Homey 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 Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shandong Homey.
Diversification Opportunities for Kweichow Moutai and Shandong Homey
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Shandong is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shandong Homey go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shandong Homey
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.52 times more return on investment than Shandong Homey. However, Kweichow Moutai Co is 1.94 times less risky than Shandong Homey. It trades about -0.02 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about -0.1 per unit of risk. If you would invest 144,000 in Kweichow Moutai Co on November 6, 2024 and sell it today you would lose (501.00) from holding Kweichow Moutai Co or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shandong Homey Aquatic
Performance |
| Timeline |
| Kweichow Moutai |
| Shandong Homey Aquatic |
Kweichow Moutai and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shandong Homey
The main advantage of trading using opposite Kweichow Moutai and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shandong Homey 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 Homey will offset losses from the drop in Shandong Homey's long position.| Kweichow Moutai vs. Juneyao Airlines | Kweichow Moutai vs. DO Home Collection | Kweichow Moutai vs. Zhangjiagang Elegant Home | Kweichow Moutai vs. Hongrun Construction Group |
| Shandong Homey vs. Shandong Sinoglory Health | Shandong Homey vs. Goodwill E Health | Shandong Homey vs. Xiandai Investment Co | Shandong Homey vs. Everjoy Health Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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