Correlation Between Kweichow Moutai and Sinomach General
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By analyzing existing cross correlation between Kweichow Moutai Co and Sinomach General Machinery, you can compare the effects of market volatilities on Kweichow Moutai and Sinomach General 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 General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Sinomach General.
Diversification Opportunities for Kweichow Moutai and Sinomach General
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Sinomach is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Sinomach General go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Sinomach General
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to generate 0.52 times more return on investment than Sinomach General. However, Kweichow Moutai Co is 1.92 times less risky than Sinomach General. It trades about 0.03 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about -0.13 per unit of risk. If you would invest 151,800 in Kweichow Moutai Co on September 29, 2024 and sell it today you would earn a total of 1,097 from holding Kweichow Moutai Co or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Sinomach General Machinery
Performance |
| Timeline |
| Kweichow Moutai |
| Sinomach General Mac |
Kweichow Moutai and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Sinomach General
The main advantage of trading using opposite Kweichow Moutai and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Sinomach General 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 General will offset losses from the drop in Sinomach General's long position.| Kweichow Moutai vs. Wasu Media Holding | Kweichow Moutai vs. Tongyu Communication | Kweichow Moutai vs. Runjian Communication Co | Kweichow Moutai vs. Shuhua Sports Co |
| Sinomach General vs. Kweichow Moutai Co | Sinomach General vs. Contemporary Amperex Technology | Sinomach General vs. G bits Network Technology | Sinomach General 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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