Correlation Between Kweichow Moutai and Shanghai Action
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Shanghai Action Education, you can compare the effects of market volatilities on Kweichow Moutai and Shanghai Action 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 Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shanghai Action.
Diversification Opportunities for Kweichow Moutai and Shanghai Action
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kweichow and Shanghai is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shanghai Action go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shanghai Action
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Shanghai Action. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.7 times less risky than Shanghai Action. The stock trades about -0.26 of its potential returns per unit of risk. The Shanghai Action Education is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,425 in Shanghai Action Education on October 29, 2024 and sell it today you would earn a total of 127.00 from holding Shanghai Action Education or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Shanghai Action Education
Performance |
| Timeline |
| Kweichow Moutai |
| Shanghai Action Education |
Kweichow Moutai and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shanghai Action
The main advantage of trading using opposite Kweichow Moutai and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shanghai Action 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 Action will offset losses from the drop in Shanghai Action's long position.| Kweichow Moutai vs. Do Fluoride Chemicals Co | Kweichow Moutai vs. Porton Fine Chemicals | Kweichow Moutai vs. Guangzhou Zhujiang Brewery | Kweichow Moutai vs. Guangdong Wens Foodstuff |
| Shanghai Action vs. Hubei Tech Semiconductors | Shanghai Action vs. Will Semiconductor Co | Shanghai Action vs. Lontium Semiconductor Corp | Shanghai Action vs. Beijing Yanjing Brewery |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |