Correlation Between Shenzhen Kexin and King-Strong New
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By analyzing existing cross correlation between Shenzhen Kexin Communication and King Strong New Material, you can compare the effects of market volatilities on Shenzhen Kexin and King-Strong New 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 King-Strong New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and King-Strong New.
Diversification Opportunities for Shenzhen Kexin and King-Strong New
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and King-Strong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King-Strong New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and King-Strong New go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and King-Strong New
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the King-Strong New. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Kexin Communication is 1.51 times less risky than King-Strong New. The stock trades about -0.22 of its potential returns per unit of risk. The King Strong New Material is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,152 in King Strong New Material on September 1, 2024 and sell it today you would earn a total of 228.00 from holding King Strong New Material or generate 10.59% 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. King Strong New Material
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| King Strong New |
Shenzhen Kexin and King-Strong New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and King-Strong New
The main advantage of trading using opposite Shenzhen Kexin and King-Strong New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, King-Strong New 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 King-Strong New will offset losses from the drop in King-Strong New'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 |
| King-Strong New vs. Tianjin Silvery Dragon | King-Strong New vs. Western Metal Materials | King-Strong New vs. Hangzhou Gaoxin Rubber | King-Strong New vs. Fuda Alloy Materials |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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