Correlation Between Kweichow Moutai and CITIC Securities
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By analyzing existing cross correlation between Kweichow Moutai Co and CITIC Securities Co, you can compare the effects of market volatilities on Kweichow Moutai and CITIC Securities 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 CITIC Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and CITIC Securities.
Diversification Opportunities for Kweichow Moutai and CITIC Securities
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kweichow and CITIC is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and CITIC Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Securities 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 CITIC Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Securities has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and CITIC Securities go up and down completely randomly.
Pair Corralation between Kweichow Moutai and CITIC Securities
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the CITIC Securities. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.26 times less risky than CITIC Securities. The stock trades about -0.02 of its potential returns per unit of risk. The CITIC Securities Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,103 in CITIC Securities Co on September 2, 2024 and sell it today you would earn a total of 972.00 from holding CITIC Securities Co or generate 46.22% 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. CITIC Securities Co
Performance |
| Timeline |
| Kweichow Moutai |
| CITIC Securities |
Kweichow Moutai and CITIC Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and CITIC Securities
The main advantage of trading using opposite Kweichow Moutai and CITIC Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, CITIC Securities 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 CITIC Securities will offset losses from the drop in CITIC Securities' long position.| Kweichow Moutai vs. Caihong Display Devices | Kweichow Moutai vs. Ningxia Building Materials | Kweichow Moutai vs. Guangzhou Tinci Materials | Kweichow Moutai vs. Cultural Investment Holdings |
| CITIC Securities vs. BeiGene | CITIC Securities vs. Kweichow Moutai Co | CITIC Securities vs. Beijing Roborock Technology | CITIC Securities 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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