Correlation Between Shenzhen Kexin and Beijing Quanshi
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Beijing Quanshi World, you can compare the effects of market volatilities on Shenzhen Kexin and Beijing Quanshi 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 Beijing Quanshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Beijing Quanshi.
Diversification Opportunities for Shenzhen Kexin and Beijing Quanshi
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Beijing is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Beijing Quanshi World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Quanshi World 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 Beijing Quanshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Quanshi World has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Beijing Quanshi go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Beijing Quanshi
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Beijing Quanshi. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Kexin Communication is 1.18 times less risky than Beijing Quanshi. The stock trades about -0.01 of its potential returns per unit of risk. The Beijing Quanshi World is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,001 in Beijing Quanshi World on September 14, 2024 and sell it today you would earn a total of 446.00 from holding Beijing Quanshi World or generate 22.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Beijing Quanshi World
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Beijing Quanshi World |
Shenzhen Kexin and Beijing Quanshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Beijing Quanshi
The main advantage of trading using opposite Shenzhen Kexin and Beijing Quanshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Beijing Quanshi 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 Beijing Quanshi will offset losses from the drop in Beijing Quanshi's long position.| Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Bank of China | Shenzhen Kexin vs. Agricultural Bank of |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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