Correlation Between Shenzhen Kexin and Shenzhen Centralcon
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Shenzhen Kexin and Shenzhen Centralcon 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 Kexin with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Shenzhen Centralcon.
Diversification Opportunities for Shenzhen Kexin and Shenzhen Centralcon
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Shenzhen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Shenzhen Kexin 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 Kexin Communication are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Shenzhen Centralcon
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Shenzhen Centralcon. In addition to that, Shenzhen Kexin is 1.24 times more volatile than Shenzhen Centralcon Investment. It trades about -0.15 of its total potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.21 per unit of volatility. If you would invest 503.00 in Shenzhen Centralcon Investment on September 15, 2024 and sell it today you would earn a total of 60.00 from holding Shenzhen Centralcon Investment or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Shenzhen Centralcon |
Shenzhen Kexin and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Shenzhen Centralcon
The main advantage of trading using opposite Shenzhen Kexin and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Shenzhen Centralcon 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 Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Bank of China | Shenzhen Kexin vs. Agricultural Bank of |
| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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