Correlation Between Kweichow Moutai and Contemporary Amperex
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By analyzing existing cross correlation between Kweichow Moutai Co and Contemporary Amperex Technology, you can compare the effects of market volatilities on Kweichow Moutai and Contemporary Amperex 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 Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Contemporary Amperex.
Diversification Opportunities for Kweichow Moutai and Contemporary Amperex
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and Contemporary is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex 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 Contemporary Amperex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contemporary Amperex has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Contemporary Amperex
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Contemporary Amperex. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.61 times less risky than Contemporary Amperex. The stock trades about -0.01 of its potential returns per unit of risk. The Contemporary Amperex Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 22,156 in Contemporary Amperex Technology on August 27, 2024 and sell it today you would earn a total of 3,754 from holding Contemporary Amperex Technology or generate 16.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Kweichow Moutai |
| Contemporary Amperex |
Kweichow Moutai and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Contemporary Amperex
The main advantage of trading using opposite Kweichow Moutai and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Contemporary Amperex 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 Contemporary Amperex will offset losses from the drop in Contemporary Amperex's long position.| Kweichow Moutai vs. 360 Security Technology | Kweichow Moutai vs. Dezhan HealthCare Co | Kweichow Moutai vs. Youngy Health Co | Kweichow Moutai vs. Mingchen Health Co |
| Contemporary Amperex vs. Kweichow Moutai Co | Contemporary Amperex vs. Shenzhen Mindray Bio Medical | Contemporary Amperex vs. Jiangsu Pacific Quartz | Contemporary Amperex vs. G bits Network 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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