Correlation Between Shenzhen Kexin and Xiamen East
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Xiamen East Asia, you can compare the effects of market volatilities on Shenzhen Kexin and Xiamen East 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 Xiamen East. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Xiamen East.
Diversification Opportunities for Shenzhen Kexin and Xiamen East
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Xiamen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Xiamen East Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen East Asia 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 Xiamen East. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen East Asia has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Xiamen East go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Xiamen East
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Xiamen East. In addition to that, Shenzhen Kexin is 1.39 times more volatile than Xiamen East Asia. It trades about -0.17 of its total potential returns per unit of risk. Xiamen East Asia is currently generating about -0.13 per unit of volatility. If you would invest 1,147 in Xiamen East Asia on August 28, 2024 and sell it today you would lose (83.00) from holding Xiamen East Asia or give up 7.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Xiamen East Asia
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Xiamen East Asia |
Shenzhen Kexin and Xiamen East Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Xiamen East
The main advantage of trading using opposite Shenzhen Kexin and Xiamen East positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Xiamen East 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 Xiamen East will offset losses from the drop in Xiamen East's long position.| Shenzhen Kexin vs. Shenzhen MYS Environmental | Shenzhen Kexin vs. AVIC Fund Management | Shenzhen Kexin vs. Shenzhen Bingchuan Network | Shenzhen Kexin vs. Penghua Shenzhen Energy |
| Xiamen East vs. Yili Chuanning Biotechnology | Xiamen East vs. Shandong Polymer Biochemicals | Xiamen East vs. Henan Shuanghui Investment | Xiamen East vs. Maccura Biotechnology 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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