Correlation Between Aba Chemicals and Shenzhen Kexin
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By analyzing existing cross correlation between Aba Chemicals Corp and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Shenzhen Kexin.
Diversification Opportunities for Aba Chemicals and Shenzhen Kexin
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and Shenzhen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp 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 Aba Chemicals 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 Aba Chemicals Corp 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 Aba Chemicals i.e., Aba Chemicals and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Aba Chemicals and Shenzhen Kexin
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to generate 1.09 times more return on investment than Shenzhen Kexin. However, Aba Chemicals is 1.09 times more volatile than Shenzhen Kexin Communication. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about 0.02 per unit of risk. If you would invest 715.00 in Aba Chemicals Corp on September 12, 2024 and sell it today you would earn a total of 99.00 from holding Aba Chemicals Corp or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Aba Chemicals Corp |
| Shenzhen Kexin Commu |
Aba Chemicals and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Shenzhen Kexin
The main advantage of trading using opposite Aba Chemicals and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.| Aba Chemicals vs. Semiconductor Manufacturing Electronics | Aba Chemicals vs. GigaDevice SemiconductorBeiji | Aba Chemicals vs. Qinghaihuading Industrial Co | Aba Chemicals vs. MayAir Technology Co |
| Shenzhen Kexin vs. Gansu Jiu Steel | Shenzhen Kexin vs. Shandong Mining Machinery | Shenzhen Kexin vs. Aba Chemicals Corp | Shenzhen Kexin vs. BlueFocus Communication Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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