Correlation Between Shenzhen Kexin and Xizi Clean
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Xizi Clean Energy, you can compare the effects of market volatilities on Shenzhen Kexin and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Xizi Clean.
Diversification Opportunities for Shenzhen Kexin and Xizi Clean
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Xizi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Xizi Clean go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Xizi Clean
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to generate 1.46 times more return on investment than Xizi Clean. However, Shenzhen Kexin is 1.46 times more volatile than Xizi Clean Energy. It trades about -0.18 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about -0.29 per unit of risk. If you would invest 1,272 in Shenzhen Kexin Communication on January 25, 2025 and sell it today you would lose (244.00) from holding Shenzhen Kexin Communication or give up 19.18% 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. Xizi Clean Energy
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Xizi Clean Energy |
Shenzhen Kexin and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Xizi Clean
The main advantage of trading using opposite Shenzhen Kexin and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. Bank of China |
| Xizi Clean vs. Dongnan Electronics Co | Xizi Clean vs. Shenzhen Clou Electronics | Xizi Clean vs. LianChuang Electronic Technology | Xizi Clean vs. Fujian Nebula Electronics |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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