Correlation Between Kweichow Moutai and Shenzhen SDG
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Shenzhen SDG Service, you can compare the effects of market volatilities on Kweichow Moutai and Shenzhen SDG 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 SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Shenzhen SDG.
Diversification Opportunities for Kweichow Moutai and Shenzhen SDG
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Shenzhen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Shenzhen SDG Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Service 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 SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Service has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Shenzhen SDG
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.38 times more return on investment than Shenzhen SDG. However, Kweichow Moutai Co is 2.6 times less risky than Shenzhen SDG. It trades about 0.08 of its potential returns per unit of risk. Shenzhen SDG Service is currently generating about -0.11 per unit of risk. If you would invest 149,857 in Kweichow Moutai Co on September 25, 2024 and sell it today you would earn a total of 2,788 from holding Kweichow Moutai Co or generate 1.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Kweichow Moutai Co vs. Shenzhen SDG Service
Performance |
Timeline |
Kweichow Moutai |
Shenzhen SDG Service |
Kweichow Moutai and Shenzhen SDG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kweichow Moutai and Shenzhen SDG
The main advantage of trading using opposite Kweichow Moutai and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Shenzhen SDG 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 SDG will offset losses from the drop in Shenzhen SDG's long position.Kweichow Moutai vs. Beijing HuaYuanYiTong Thermal | Kweichow Moutai vs. Maxvision Technology Corp | Kweichow Moutai vs. Dongguan Aohai Technology | Kweichow Moutai vs. Chengtun Mining Group |
Shenzhen SDG vs. PetroChina Co Ltd | Shenzhen SDG vs. China Mobile Limited | Shenzhen SDG vs. CNOOC Limited | Shenzhen SDG vs. Ping An Insurance |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |