Correlation Between Shenzhen Kexin and Xian International
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Xian International Medical, you can compare the effects of market volatilities on Shenzhen Kexin and Xian International 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 Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Xian International.
Diversification Opportunities for Shenzhen Kexin and Xian International
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Xian is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International 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 Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Xian International go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Xian International
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to generate 1.44 times more return on investment than Xian International. However, Shenzhen Kexin is 1.44 times more volatile than Xian International Medical. It trades about 0.0 of its potential returns per unit of risk. Xian International Medical is currently generating about -0.03 per unit of risk. If you would invest 1,605 in Shenzhen Kexin Communication on September 3, 2024 and sell it today you would lose (226.00) from holding Shenzhen Kexin Communication or give up 14.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Xian International Medical
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Xian International |
Shenzhen Kexin and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Xian International
The main advantage of trading using opposite Shenzhen Kexin and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Postal Savings Bank | Shenzhen Kexin vs. Bank of Communications |
| Xian International vs. Heren Health Co | Xian International vs. Yindu Kitchen Equipment | Xian International vs. PKU HealthCare Corp | Xian International vs. By health |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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