Correlation Between Shenzhen Kexin and Yankershop Food
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Yankershop Food Co, you can compare the effects of market volatilities on Shenzhen Kexin and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Yankershop Food.
Diversification Opportunities for Shenzhen Kexin and Yankershop Food
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Yankershop is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Yankershop Food go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Yankershop Food
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Yankershop Food. In addition to that, Shenzhen Kexin is 1.61 times more volatile than Yankershop Food Co. It trades about -0.02 of its total potential returns per unit of risk. Yankershop Food Co is currently generating about 0.02 per unit of volatility. If you would invest 4,749 in Yankershop Food Co on September 2, 2024 and sell it today you would earn a total of 432.00 from holding Yankershop Food Co or generate 9.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Yankershop Food Co
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Yankershop Food |
Shenzhen Kexin and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Yankershop Food
The main advantage of trading using opposite Shenzhen Kexin and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. Kweichow Moutai Co | Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. China Mobile Limited |
| Yankershop Food vs. Guangzhou Boji Medical | Yankershop Food vs. Shenzhen Kexin Communication | Yankershop Food vs. Wuhan Yangtze Communication | Yankershop Food vs. Jilin Jlu Communication |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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