Correlation Between Kweichow Moutai and Cinda Securities
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By analyzing existing cross correlation between Kweichow Moutai Co and Cinda Securities Co, you can compare the effects of market volatilities on Kweichow Moutai and Cinda 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Cinda Securities.
Diversification Opportunities for Kweichow Moutai and Cinda Securities
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kweichow and Cinda is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Cinda Securities go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Cinda Securities
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Cinda Securities. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.65 times less risky than Cinda Securities. The stock trades about -0.03 of its potential returns per unit of risk. The Cinda Securities Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,830 in Cinda Securities Co on August 30, 2024 and sell it today you would lose (328.00) from holding Cinda Securities Co or give up 17.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Cinda Securities Co
Performance |
| Timeline |
| Kweichow Moutai |
| Cinda Securities |
Kweichow Moutai and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Cinda Securities
The main advantage of trading using opposite Kweichow Moutai and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Cinda 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Kweichow Moutai vs. PetroChina Co Ltd | Kweichow Moutai vs. China Mobile Limited | Kweichow Moutai vs. Ping An Insurance | Kweichow Moutai vs. China Petroleum Chemical |
| Cinda Securities vs. Kweichow Moutai Co | Cinda Securities vs. Contemporary Amperex Technology | Cinda Securities vs. G bits Network Technology | Cinda Securities 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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