Correlation Between Kweichow Moutai and Shenzhen Sunway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Shenzhen Sunway Communication, you can compare the effects of market volatilities on Kweichow Moutai and Shenzhen Sunway 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 Shenzhen Sunway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shenzhen Sunway.
Diversification Opportunities for Kweichow Moutai and Shenzhen Sunway
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kweichow and Shenzhen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shenzhen Sunway Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunway Comm 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 Shenzhen Sunway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunway Comm has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shenzhen Sunway go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shenzhen Sunway
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.49 times more return on investment than Shenzhen Sunway. However, Kweichow Moutai Co is 2.04 times less risky than Shenzhen Sunway. It trades about -0.02 of its potential returns per unit of risk. Shenzhen Sunway Communication is currently generating about -0.01 per unit of risk. If you would invest 154,659 in Kweichow Moutai Co on December 10, 2024 and sell it today you would lose (2,369) from holding Kweichow Moutai Co or give up 1.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kweichow Moutai Co vs. Shenzhen Sunway Communication
Performance |
Timeline |
Kweichow Moutai |
Shenzhen Sunway Comm |
Kweichow Moutai and Shenzhen Sunway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kweichow Moutai and Shenzhen Sunway
The main advantage of trading using opposite Kweichow Moutai and Shenzhen Sunway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shenzhen Sunway 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 Shenzhen Sunway will offset losses from the drop in Shenzhen Sunway's long position.Kweichow Moutai vs. Kuang Chi Technologies | Kweichow Moutai vs. China World Trade | Kweichow Moutai vs. INKON Life Technology | Kweichow Moutai vs. Sinofibers Technology Co |
Shenzhen Sunway vs. Jilin Jlu Communication | Shenzhen Sunway vs. Fiberhome Telecommunication Technologies | Shenzhen Sunway vs. Suofeiya Home Collection | Shenzhen Sunway vs. AUPU Home Style |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |