Correlation Between Kweichow Moutai and Shanghai Xinhua
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By analyzing existing cross correlation between Kweichow Moutai Co and Shanghai Xinhua Media, you can compare the effects of market volatilities on Kweichow Moutai and Shanghai Xinhua 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 Shanghai Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shanghai Xinhua.
Diversification Opportunities for Kweichow Moutai and Shanghai Xinhua
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Shanghai is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shanghai Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Xinhua Media 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 Shanghai Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Xinhua Media has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shanghai Xinhua go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shanghai Xinhua
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Shanghai Xinhua. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.2 times less risky than Shanghai Xinhua. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai Xinhua Media is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 527.00 in Shanghai Xinhua Media on September 12, 2024 and sell it today you would earn a total of 298.00 from holding Shanghai Xinhua Media or generate 56.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shanghai Xinhua Media
Performance |
| Timeline |
| Kweichow Moutai |
| Shanghai Xinhua Media |
Kweichow Moutai and Shanghai Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shanghai Xinhua
The main advantage of trading using opposite Kweichow Moutai and Shanghai Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shanghai Xinhua 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 Shanghai Xinhua will offset losses from the drop in Shanghai Xinhua's long position.| Kweichow Moutai vs. Luyin Investment Group | Kweichow Moutai vs. Sichuan Fulin Transportation | Kweichow Moutai vs. Zhongshan Broad Ocean Motor | Kweichow Moutai vs. Southchip Semiconductor Technology |
| Shanghai Xinhua vs. Kweichow Moutai Co | Shanghai Xinhua vs. Shenzhen Mindray Bio Medical | Shanghai Xinhua vs. G bits Network Technology | Shanghai Xinhua 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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