Correlation Between CICT Mobile and Kweichow Moutai
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By analyzing existing cross correlation between CICT Mobile Communication and Kweichow Moutai Co, you can compare the effects of market volatilities on CICT Mobile 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 CICT Mobile with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Kweichow Moutai.
Diversification Opportunities for CICT Mobile and Kweichow Moutai
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CICT and Kweichow is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and CICT Mobile 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 CICT Mobile Communication 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 CICT Mobile i.e., CICT Mobile and Kweichow Moutai go up and down completely randomly.
Pair Corralation between CICT Mobile and Kweichow Moutai
Assuming the 90 days trading horizon CICT Mobile Communication is expected to under-perform the Kweichow Moutai. In addition to that, CICT Mobile is 1.98 times more volatile than Kweichow Moutai Co. It trades about -0.04 of its total potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.08 per unit of volatility. If you would invest 155,220 in Kweichow Moutai Co on August 25, 2024 and sell it today you would lose (4,438) from holding Kweichow Moutai Co or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICT Mobile Communication vs. Kweichow Moutai Co
Performance |
| Timeline |
| CICT Mobile Communication |
| Kweichow Moutai |
CICT Mobile and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICT Mobile and Kweichow Moutai
The main advantage of trading using opposite CICT Mobile and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile 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.| CICT Mobile vs. Shenzhen MYS Environmental | CICT Mobile vs. AVIC Fund Management | CICT Mobile vs. Shenzhen Bingchuan Network | CICT Mobile vs. Penghua Shenzhen Energy |
| Kweichow Moutai vs. State Grid InformationCommunication | Kweichow Moutai vs. CICT Mobile Communication | Kweichow Moutai vs. Western Mining Co | Kweichow Moutai vs. Allwin Telecommunication Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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