Correlation Between Shenzhen Noposion and Shenzhen Kexin
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Shenzhen Kexin.
Diversification Opportunities for Shenzhen Noposion and Shenzhen Kexin
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Shenzhen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical 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 Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Shenzhen Kexin
Assuming the 90 days trading horizon Shenzhen Noposion is expected to generate 1.38 times less return on investment than Shenzhen Kexin. But when comparing it to its historical volatility, Shenzhen Noposion Agrochemicals is 1.68 times less risky than Shenzhen Kexin. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,075 in Shenzhen Kexin Communication on August 31, 2024 and sell it today you would earn a total of 286.00 from holding Shenzhen Kexin Communication or generate 26.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Shenzhen Noposion |
| Shenzhen Kexin Commu |
Shenzhen Noposion and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Shenzhen Kexin
The main advantage of trading using opposite Shenzhen Noposion and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Fujian Boss Software | Shenzhen Noposion vs. Linewell Software Co | Shenzhen Noposion vs. Jinhe Biotechnology Co | Shenzhen Noposion vs. China National Software |
| Shenzhen Kexin vs. Kweichow Moutai Co | Shenzhen Kexin vs. NAURA Technology Group | Shenzhen Kexin vs. APT Medical | Shenzhen Kexin vs. Contemporary Amperex Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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