Correlation Between Qingdao Choho and Shenzhen Kexin
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By analyzing existing cross correlation between Qingdao Choho Industrial and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Qingdao Choho 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 Qingdao Choho with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Shenzhen Kexin.
Diversification Opportunities for Qingdao Choho and Shenzhen Kexin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial 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 Qingdao Choho 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 Qingdao Choho Industrial 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 Qingdao Choho i.e., Qingdao Choho and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Qingdao Choho and Shenzhen Kexin
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to generate 0.71 times more return on investment than Shenzhen Kexin. However, Qingdao Choho Industrial is 1.41 times less risky than Shenzhen Kexin. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.25 per unit of risk. If you would invest 2,698 in Qingdao Choho Industrial on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Qingdao Choho Industrial or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Choho Industrial vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Shenzhen Kexin Commu |
Qingdao Choho and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Shenzhen Kexin
The main advantage of trading using opposite Qingdao Choho and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho 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.| Qingdao Choho vs. Zhejiang Construction Investment | Qingdao Choho vs. Puyang Huicheng Electronic | Qingdao Choho vs. Epoxy Base Electronic | Qingdao Choho vs. Dongnan Electronics Co |
| Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Postal Savings Bank | Shenzhen Kexin vs. Bank of Communications |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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