Correlation Between Kweichow Moutai and Sinomach Automobile
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By analyzing existing cross correlation between Kweichow Moutai Co and Sinomach Automobile Co, you can compare the effects of market volatilities on Kweichow Moutai and Sinomach 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Sinomach Automobile.
Diversification Opportunities for Kweichow Moutai and Sinomach Automobile
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kweichow and Sinomach is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Sinomach Automobile
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Sinomach Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.54 times less risky than Sinomach Automobile. The stock trades about -0.08 of its potential returns per unit of risk. The Sinomach Automobile Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 624.00 in Sinomach Automobile Co on August 25, 2024 and sell it today you would earn a total of 32.00 from holding Sinomach Automobile Co or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Sinomach Automobile Co
Performance |
| Timeline |
| Kweichow Moutai |
| Sinomach Automobile |
Kweichow Moutai and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Sinomach Automobile
The main advantage of trading using opposite Kweichow Moutai and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Sinomach 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| Kweichow Moutai vs. State Grid InformationCommunication | Kweichow Moutai vs. CICT Mobile Communication | Kweichow Moutai vs. Western Mining Co | Kweichow Moutai vs. Allwin Telecommunication Co |
| Sinomach Automobile vs. Kweichow Moutai Co | Sinomach Automobile vs. Contemporary Amperex Technology | Sinomach Automobile vs. G bits Network Technology | Sinomach Automobile vs. BYD Co Ltd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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