Correlation Between Shanghai Sanyou and Kweichow Moutai
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By analyzing existing cross correlation between Shanghai Sanyou Medical and Kweichow Moutai Co, you can compare the effects of market volatilities on Shanghai Sanyou and Kweichow Moutai 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 Shanghai Sanyou with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Sanyou and Kweichow Moutai.
Diversification Opportunities for Shanghai Sanyou and Kweichow Moutai
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Kweichow is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Sanyou Medical and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Shanghai Sanyou 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 Shanghai Sanyou Medical are associated (or correlated) with Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of Shanghai Sanyou i.e., Shanghai Sanyou and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Shanghai Sanyou and Kweichow Moutai
Assuming the 90 days trading horizon Shanghai Sanyou Medical is expected to generate 1.74 times more return on investment than Kweichow Moutai. However, Shanghai Sanyou is 1.74 times more volatile than Kweichow Moutai Co. It trades about 0.02 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.02 per unit of risk. If you would invest 2,185 in Shanghai Sanyou Medical on September 12, 2024 and sell it today you would earn a total of 127.00 from holding Shanghai Sanyou Medical or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Sanyou Medical vs. Kweichow Moutai Co
Performance |
| Timeline |
| Shanghai Sanyou Medical |
| Kweichow Moutai |
Shanghai Sanyou and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Sanyou and Kweichow Moutai
The main advantage of trading using opposite Shanghai Sanyou and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Sanyou position performs unexpectedly, Kweichow Moutai 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 Kweichow Moutai will offset losses from the drop in Kweichow Moutai's long position.| Shanghai Sanyou vs. Cultural Investment Holdings | Shanghai Sanyou vs. Gome Telecom Equipment | Shanghai Sanyou vs. Holitech Technology Co | Shanghai Sanyou vs. Zotye Automobile Co |
| 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 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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