Correlation Between Gotion High and Kweichow Moutai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gotion High tech and Kweichow Moutai Co, you can compare the effects of market volatilities on Gotion High 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 Gotion High with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gotion High and Kweichow Moutai.
Diversification Opportunities for Gotion High and Kweichow Moutai
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gotion and Kweichow is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gotion High tech and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and Gotion High 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 Gotion High tech 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 Gotion High i.e., Gotion High and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Gotion High and Kweichow Moutai
Assuming the 90 days trading horizon Gotion High tech is expected to under-perform the Kweichow Moutai. In addition to that, Gotion High is 1.44 times more volatile than Kweichow Moutai Co. It trades about -0.37 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 149,857 in Kweichow Moutai Co on September 25, 2024 and sell it today you would earn a total of 2,788 from holding Kweichow Moutai Co or generate 1.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gotion High tech vs. Kweichow Moutai Co
Performance |
Timeline |
Gotion High tech |
Kweichow Moutai |
Gotion High and Kweichow Moutai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gotion High and Kweichow Moutai
The main advantage of trading using opposite Gotion High and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gotion High 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.Gotion High vs. Kweichow Moutai Co | Gotion High vs. Contemporary Amperex Technology | Gotion High vs. G bits Network Technology | Gotion High vs. BYD Co Ltd |
Kweichow Moutai vs. Beijing HuaYuanYiTong Thermal | Kweichow Moutai vs. Maxvision Technology Corp | Kweichow Moutai vs. Dongguan Aohai Technology | Kweichow Moutai vs. Chengtun Mining Group |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |