Correlation Between 159005 and Shenzhen Kexin
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By analyzing existing cross correlation between 159005 and Shenzhen Kexin Communication, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Shenzhen Kexin.
Diversification Opportunities for 159005 and Shenzhen Kexin
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between 159005 and Shenzhen Kexin
Assuming the 90 days trading horizon 159005 is expected to generate 0.01 times more return on investment than Shenzhen Kexin. However, 159005 is 120.6 times less risky than Shenzhen Kexin. It trades about 0.21 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.17 per unit of risk. If you would invest 9,987 in 159005 on August 28, 2024 and sell it today you would earn a total of 13.00 from holding 159005 or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| 159005 |
| Shenzhen Kexin Commu |
159005 and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Shenzhen Kexin
The main advantage of trading using opposite 159005 and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.| 159005 vs. Shenzhen MTC Co | 159005 vs. Ming Yang Smart | 159005 vs. Changzhou Almaden Co | 159005 vs. Loctek Ergonomic Technology |
| Shenzhen Kexin vs. Shenzhen MYS Environmental | Shenzhen Kexin vs. AVIC Fund Management | Shenzhen Kexin vs. Shenzhen Bingchuan Network | Shenzhen Kexin vs. Penghua Shenzhen Energy |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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