Correlation Between Kweichow Moutai and Shuhua Sports
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By analyzing existing cross correlation between Kweichow Moutai Co and Shuhua Sports Co, you can compare the effects of market volatilities on Kweichow Moutai and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shuhua Sports.
Diversification Opportunities for Kweichow Moutai and Shuhua Sports
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kweichow and Shuhua is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shuhua Sports go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shuhua Sports
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.61 times more return on investment than Shuhua Sports. However, Kweichow Moutai Co is 1.64 times less risky than Shuhua Sports. It trades about -0.02 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about -0.03 per unit of risk. If you would invest 177,482 in Kweichow Moutai Co on August 24, 2024 and sell it today you would lose (26,700) from holding Kweichow Moutai Co or give up 15.04% 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. Shuhua Sports Co
Performance |
| Timeline |
| Kweichow Moutai |
| Shuhua Sports |
Kweichow Moutai and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Shuhua Sports
The main advantage of trading using opposite Kweichow Moutai and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Kweichow Moutai vs. Duzhe Publishing Media | Kweichow Moutai vs. Southern PublishingMedia Co | Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. Shandong Publishing Media |
| Shuhua Sports vs. Kweichow Moutai Co | Shuhua Sports vs. Contemporary Amperex Technology | Shuhua Sports vs. G bits Network Technology | Shuhua Sports 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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