Correlation Between Kweichow Moutai and China Mobile
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By analyzing existing cross correlation between Kweichow Moutai Co and China Mobile Limited, you can compare the effects of market volatilities on Kweichow Moutai and China Mobile 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 China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and China Mobile.
Diversification Opportunities for Kweichow Moutai and China Mobile
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kweichow and China is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and China Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mobile Limited 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 China Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mobile Limited has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and China Mobile go up and down completely randomly.
Pair Corralation between Kweichow Moutai and China Mobile
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the China Mobile. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.25 times less risky than China Mobile. The stock trades about -0.21 of its potential returns per unit of risk. The China Mobile Limited is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 11,140 in China Mobile Limited on October 21, 2024 and sell it today you would lose (230.00) from holding China Mobile Limited or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. China Mobile Limited
Performance |
| Timeline |
| Kweichow Moutai |
| China Mobile Limited |
Kweichow Moutai and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and China Mobile
The main advantage of trading using opposite Kweichow Moutai and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, China Mobile 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 China Mobile will offset losses from the drop in China Mobile's long position.| Kweichow Moutai vs. China Publishing Media | Kweichow Moutai vs. Haima Automobile Group | Kweichow Moutai vs. Jiangsu Xinri E Vehicle | Kweichow Moutai vs. Jiangsu Phoenix Publishing |
| China Mobile vs. GreenTech Environmental Co | China Mobile vs. Ningbo Kangqiang Electronics | China Mobile vs. Sihui Fuji Electronics | China Mobile vs. Bengang Steel Plates |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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