Correlation Between Shenzhen Kexin and Soyea Technology
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Soyea Technology Co, you can compare the effects of market volatilities on Shenzhen Kexin and Soyea Technology 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 Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Soyea Technology.
Diversification Opportunities for Shenzhen Kexin and Soyea Technology
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Soyea is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology 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 Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Soyea Technology go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Soyea Technology
Assuming the 90 days trading horizon Shenzhen Kexin is expected to generate 1.62 times less return on investment than Soyea Technology. In addition to that, Shenzhen Kexin is 1.41 times more volatile than Soyea Technology Co. It trades about 0.05 of its total potential returns per unit of risk. Soyea Technology Co is currently generating about 0.12 per unit of volatility. If you would invest 345.00 in Soyea Technology Co on October 30, 2024 and sell it today you would earn a total of 176.00 from holding Soyea Technology Co or generate 51.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Soyea Technology Co
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Soyea Technology |
Shenzhen Kexin and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Soyea Technology
The main advantage of trading using opposite Shenzhen Kexin and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| Shenzhen Kexin vs. Bus Online Co | Shenzhen Kexin vs. Holitech Technology Co | Shenzhen Kexin vs. Gome Telecom Equipment | Shenzhen Kexin vs. Cultural Investment Holdings |
| Soyea Technology vs. Ningbo Tip Rubber | Soyea Technology vs. Fuda Alloy Materials | Soyea Technology vs. Mingchen Health Co | Soyea Technology vs. Andon Health 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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