Correlation Between Shenzhen Kexin and Gansu Huangtai
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Shenzhen Kexin and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Gansu Huangtai.
Diversification Opportunities for Shenzhen Kexin and Gansu Huangtai
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Gansu is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Gansu Huangtai
Assuming the 90 days trading horizon Shenzhen Kexin is expected to generate 23.0 times less return on investment than Gansu Huangtai. But when comparing it to its historical volatility, Shenzhen Kexin Communication is 1.0 times less risky than Gansu Huangtai. It trades about 0.0 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,685 in Gansu Huangtai Wine marketing on October 30, 2024 and sell it today you would lose (209.00) from holding Gansu Huangtai Wine marketing or give up 12.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Gansu Huangtai Wine |
Shenzhen Kexin and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Gansu Huangtai
The main advantage of trading using opposite Shenzhen Kexin and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai'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 |
| Gansu Huangtai vs. PetroChina Co Ltd | Gansu Huangtai vs. Industrial and Commercial | Gansu Huangtai vs. China Petroleum Chemical | Gansu Huangtai vs. China Construction Bank |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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