Correlation Between Cinda Securities and Kweichow Moutai
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By analyzing existing cross correlation between Cinda Securities Co and Kweichow Moutai Co, you can compare the effects of market volatilities on Cinda Securities and Kweichow Moutai 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 Cinda Securities with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Kweichow Moutai.
Diversification Opportunities for Cinda Securities and Kweichow Moutai
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cinda and Kweichow is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of Cinda Securities i.e., Cinda Securities and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Cinda Securities and Kweichow Moutai
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 1.37 times more return on investment than Kweichow Moutai. However, Cinda Securities is 1.37 times more volatile than Kweichow Moutai Co. It trades about 0.04 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about 0.02 per unit of risk. If you would invest 1,242 in Cinda Securities Co on November 2, 2024 and sell it today you would earn a total of 85.00 from holding Cinda Securities Co or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Kweichow Moutai Co
Performance |
| Timeline |
| Cinda Securities |
| Kweichow Moutai |
Cinda Securities and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Kweichow Moutai
The main advantage of trading using opposite Cinda Securities and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Kweichow Moutai 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 Kweichow Moutai will offset losses from the drop in Kweichow Moutai's long position.| Cinda Securities vs. Anhui Deli Household | Cinda Securities vs. Bomesc Offshore Engineering | Cinda Securities vs. Double Medical Technology | Cinda Securities vs. Guangdong Transtek Medical |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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