Correlation Between Kuang Chi and Shenzhen
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By analyzing existing cross correlation between Kuang Chi Technologies and Shenzhen AV Display Co, you can compare the effects of market volatilities on Kuang Chi and Shenzhen 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 Kuang Chi with a short position of Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Shenzhen.
Diversification Opportunities for Kuang Chi and Shenzhen
Modest diversification
The 3 months correlation between Kuang and Shenzhen is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display and Kuang Chi 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 Kuang Chi Technologies are associated (or correlated) with Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Kuang Chi i.e., Kuang Chi and Shenzhen go up and down completely randomly.
Pair Corralation between Kuang Chi and Shenzhen
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 0.85 times more return on investment than Shenzhen. However, Kuang Chi Technologies is 1.18 times less risky than Shenzhen. It trades about 0.07 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about 0.02 per unit of risk. If you would invest 1,858 in Kuang Chi Technologies on October 27, 2024 and sell it today you would earn a total of 2,249 from holding Kuang Chi Technologies or generate 121.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Kuang Chi Technologies |
| Shenzhen AV Display |
Kuang Chi and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Shenzhen
The main advantage of trading using opposite Kuang Chi and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Shenzhen 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 will offset losses from the drop in Shenzhen's long position.| Kuang Chi vs. Meinian Onehealth Healthcare | Kuang Chi vs. Mingchen Health Co | Kuang Chi vs. Tonghua Grape Wine | Kuang Chi vs. Shenzhen Topway Video |
| Shenzhen vs. Yindu Kitchen Equipment | Shenzhen vs. Beijing Bewinner Communications | Shenzhen vs. Bank of Communications | Shenzhen vs. Aba Chemicals Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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