Correlation Between Shenzhen Kexin and Qingdao Choho
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Qingdao Choho Industrial, you can compare the effects of market volatilities on Shenzhen Kexin and Qingdao Choho 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 Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Qingdao Choho.
Diversification Opportunities for Shenzhen Kexin and Qingdao Choho
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Qingdao is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Qingdao Choho go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Qingdao Choho
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Qingdao Choho. In addition to that, Shenzhen Kexin is 1.41 times more volatile than Qingdao Choho Industrial. It trades about -0.25 of its total potential returns per unit of risk. Qingdao Choho Industrial is currently generating about 0.06 per unit of volatility. If you would invest 2,698 in Qingdao Choho Industrial on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Qingdao Choho Industrial or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Qingdao Choho Industrial
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Qingdao Choho Industrial |
Shenzhen Kexin and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Qingdao Choho
The main advantage of trading using opposite Shenzhen Kexin and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho's long position.| Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Postal Savings Bank | Shenzhen Kexin vs. Bank of Communications |
| Qingdao Choho vs. Zhejiang Construction Investment | Qingdao Choho vs. Puyang Huicheng Electronic | Qingdao Choho vs. Epoxy Base Electronic | Qingdao Choho vs. Dongnan Electronics 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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