Correlation Between Shenzhen Kexin and SI TECH
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By analyzing existing cross correlation between Shenzhen Kexin Communication and SI TECH Information Technology, you can compare the effects of market volatilities on Shenzhen Kexin and SI TECH 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 SI TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and SI TECH.
Diversification Opportunities for Shenzhen Kexin and SI TECH
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and 300608 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and SI TECH Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SI TECH Information 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 SI TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SI TECH Information has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and SI TECH go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and SI TECH
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the SI TECH. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Kexin Communication is 1.2 times less risky than SI TECH. The stock trades about -0.02 of its potential returns per unit of risk. The SI TECH Information Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 886.00 in SI TECH Information Technology on October 16, 2024 and sell it today you would earn a total of 133.00 from holding SI TECH Information Technology or generate 15.01% 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. SI TECH Information Technology
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| SI TECH Information |
Shenzhen Kexin and SI TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and SI TECH
The main advantage of trading using opposite Shenzhen Kexin and SI TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, SI TECH 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 SI TECH will offset losses from the drop in SI TECH's long position.| Shenzhen Kexin vs. Western Metal Materials | Shenzhen Kexin vs. Bank of Suzhou | Shenzhen Kexin vs. Unisplendour Corp | Shenzhen Kexin vs. Soochow Suzhou Industrial |
| SI TECH vs. Shenzhen Kexin Communication | SI TECH vs. Yindu Kitchen Equipment | SI TECH vs. State Grid InformationCommunication | SI TECH vs. Gansu Huangtai Wine marketing |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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