Correlation Between Kweichow Moutai and Iat Automobile
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By analyzing existing cross correlation between Kweichow Moutai Co and Iat Automobile Technology, you can compare the effects of market volatilities on Kweichow Moutai and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Iat Automobile.
Diversification Opportunities for Kweichow Moutai and Iat Automobile
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kweichow and Iat is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Iat Automobile go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Iat Automobile
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.45 times less risky than Iat Automobile. The stock trades about -0.02 of its potential returns per unit of risk. The Iat Automobile Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,293 in Iat Automobile Technology on October 29, 2024 and sell it today you would lose (143.00) from holding Iat Automobile Technology or give up 11.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Iat Automobile Technology
Performance |
| Timeline |
| Kweichow Moutai |
| Iat Automobile Technology |
Kweichow Moutai and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Iat Automobile
The main advantage of trading using opposite Kweichow Moutai and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.| Kweichow Moutai vs. Do Fluoride Chemicals Co | Kweichow Moutai vs. Porton Fine Chemicals | Kweichow Moutai vs. Guangzhou Zhujiang Brewery | Kweichow Moutai vs. Guangdong Wens Foodstuff |
| Iat Automobile vs. Puya Semiconductor Shanghai | Iat Automobile vs. Aluminum Corp of | Iat Automobile vs. StarPower Semiconductor | Iat Automobile vs. Shanghai Yanpu Metal |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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