Correlation Between Shenwan Hongyuan and Kweichow Moutai
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By analyzing existing cross correlation between Shenwan Hongyuan Group and Kweichow Moutai Co, you can compare the effects of market volatilities on Shenwan Hongyuan 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 Shenwan Hongyuan with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwan Hongyuan and Kweichow Moutai.
Diversification Opportunities for Shenwan Hongyuan and Kweichow Moutai
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenwan and Kweichow is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenwan Hongyuan Group and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Shenwan Hongyuan 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 Shenwan Hongyuan Group 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 Shenwan Hongyuan i.e., Shenwan Hongyuan and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Shenwan Hongyuan and Kweichow Moutai
Assuming the 90 days trading horizon Shenwan Hongyuan Group is expected to generate 0.93 times more return on investment than Kweichow Moutai. However, Shenwan Hongyuan Group is 1.08 times less risky than Kweichow Moutai. It trades about 0.14 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about 0.07 per unit of risk. If you would invest 525.00 in Shenwan Hongyuan Group on September 24, 2024 and sell it today you would earn a total of 16.00 from holding Shenwan Hongyuan Group or generate 3.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenwan Hongyuan Group vs. Kweichow Moutai Co
Performance |
Timeline |
Shenwan Hongyuan |
Kweichow Moutai |
Shenwan Hongyuan and Kweichow Moutai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenwan Hongyuan and Kweichow Moutai
The main advantage of trading using opposite Shenwan Hongyuan and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwan Hongyuan 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.Shenwan Hongyuan vs. Kweichow Moutai Co | Shenwan Hongyuan vs. Contemporary Amperex Technology | Shenwan Hongyuan vs. G bits Network Technology | Shenwan Hongyuan vs. BYD Co Ltd |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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