Correlation Between Shenzhen Kexin and Aerospace Hi-Tech
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Aerospace Hi Tech Holding, you can compare the effects of market volatilities on Shenzhen Kexin and Aerospace Hi-Tech 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 Aerospace Hi-Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Aerospace Hi-Tech.
Diversification Opportunities for Shenzhen Kexin and Aerospace Hi-Tech
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Aerospace is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Aerospace Hi Tech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerospace Hi Tech 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 Aerospace Hi-Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerospace Hi Tech has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Aerospace Hi-Tech go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Aerospace Hi-Tech
Assuming the 90 days trading horizon Shenzhen Kexin is expected to generate 115.88 times less return on investment than Aerospace Hi-Tech. In addition to that, Shenzhen Kexin is 1.24 times more volatile than Aerospace Hi Tech Holding. It trades about 0.0 of its total potential returns per unit of risk. Aerospace Hi Tech Holding is currently generating about 0.03 per unit of volatility. If you would invest 980.00 in Aerospace Hi Tech Holding on November 28, 2024 and sell it today you would earn a total of 151.00 from holding Aerospace Hi Tech Holding or generate 15.41% 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. Aerospace Hi Tech Holding
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Aerospace Hi Tech |
Shenzhen Kexin and Aerospace Hi-Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Aerospace Hi-Tech
The main advantage of trading using opposite Shenzhen Kexin and Aerospace Hi-Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Aerospace Hi-Tech 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 Aerospace Hi-Tech will offset losses from the drop in Aerospace Hi-Tech's long position.| Shenzhen Kexin vs. Penyao Environmental Protection | Shenzhen Kexin vs. Beijing Kaiwen Education | Shenzhen Kexin vs. Wangneng Environment Co | Shenzhen Kexin vs. Southern PublishingMedia Co |
| Aerospace Hi-Tech vs. New China Life | Aerospace Hi-Tech vs. Ming Yang Smart | Aerospace Hi-Tech vs. 159681 | Aerospace Hi-Tech vs. 159005 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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