Correlation Between Kweichow Moutai and Beijing Shanghai
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By analyzing existing cross correlation between Kweichow Moutai Co and Beijing Shanghai High Speed, you can compare the effects of market volatilities on Kweichow Moutai and Beijing Shanghai 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 Beijing Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Beijing Shanghai.
Diversification Opportunities for Kweichow Moutai and Beijing Shanghai
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Beijing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High 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 Beijing Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Beijing Shanghai go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Beijing Shanghai
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Beijing Shanghai. In addition to that, Kweichow Moutai is 1.15 times more volatile than Beijing Shanghai High Speed. It trades about 0.0 of its total potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about 0.02 per unit of volatility. If you would invest 515.00 in Beijing Shanghai High Speed on August 26, 2024 and sell it today you would earn a total of 38.00 from holding Beijing Shanghai High Speed or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Beijing Shanghai High Speed
Performance |
| Timeline |
| Kweichow Moutai |
| Beijing Shanghai High |
Kweichow Moutai and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Beijing Shanghai
The main advantage of trading using opposite Kweichow Moutai and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Beijing Shanghai 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 Beijing Shanghai will offset losses from the drop in Beijing Shanghai's long position.| Kweichow Moutai vs. State Grid InformationCommunication | Kweichow Moutai vs. CICT Mobile Communication | Kweichow Moutai vs. Western Mining Co | Kweichow Moutai vs. Allwin Telecommunication Co |
| Beijing Shanghai vs. CSSC Offshore Marine | Beijing Shanghai vs. Jonjee Hi tech Industrial | Beijing Shanghai vs. ChengDu Hi Tech Development | Beijing Shanghai vs. Suzhou Mingzhi 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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