Correlation Between China Securities and Shenzhen Kexin
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By analyzing existing cross correlation between China Securities 800 and Shenzhen Kexin Communication, you can compare the effects of market volatilities on China Securities and Shenzhen Kexin 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 China Securities with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Shenzhen Kexin.
Diversification Opportunities for China Securities and Shenzhen Kexin
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu and China 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 China Securities 800 are associated (or correlated) with Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of China Securities i.e., China Securities and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between China Securities and Shenzhen Kexin
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.43 times more return on investment than Shenzhen Kexin. However, China Securities 800 is 2.33 times less risky than Shenzhen Kexin. It trades about -0.03 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.2 per unit of risk. If you would invest 422,167 in China Securities 800 on August 25, 2024 and sell it today you would lose (4,615) from holding China Securities 800 or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Shenzhen Kexin Communication
Performance |
| Timeline |
China Securities and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Shenzhen Kexin Communication
Pair trading matchups for Shenzhen Kexin
Pair Trading with China Securities and Shenzhen Kexin
The main advantage of trading using opposite China Securities and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Shenzhen Kexin 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 Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin's long position.| China Securities vs. Zhejiang Yayi Metal | China Securities vs. Huatian Hotel Group | China Securities vs. Semiconductor Manufacturing Electronics | China Securities vs. Dalian Thermal Power |
| Shenzhen Kexin vs. Ming Yang Smart | Shenzhen Kexin vs. 159005 | Shenzhen Kexin vs. Loctek Ergonomic Technology | Shenzhen Kexin vs. Xiamen East Asia |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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