Correlation Between Shenzhen Kexin and CIMC Vehicles
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By analyzing existing cross correlation between Shenzhen Kexin Communication and CIMC Vehicles Co, you can compare the effects of market volatilities on Shenzhen Kexin and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and CIMC Vehicles.
Diversification Opportunities for Shenzhen Kexin and CIMC Vehicles
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and CIMC is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and CIMC Vehicles
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to generate 2.43 times more return on investment than CIMC Vehicles. However, Shenzhen Kexin is 2.43 times more volatile than CIMC Vehicles Co. It trades about 0.06 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.23 per unit of risk. If you would invest 1,206 in Shenzhen Kexin Communication on December 1, 2024 and sell it today you would earn a total of 32.00 from holding Shenzhen Kexin Communication or generate 2.65% 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. CIMC Vehicles Co
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| CIMC Vehicles |
Shenzhen Kexin and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and CIMC Vehicles
The main advantage of trading using opposite Shenzhen Kexin and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Shenzhen Kexin vs. Western Mining Co | Shenzhen Kexin vs. Zijin Mining Group | Shenzhen Kexin vs. Shenyang Blue Silver | Shenzhen Kexin vs. Wintao Communications Co |
| CIMC Vehicles vs. Aba Chemicals Corp | CIMC Vehicles vs. China Sports Industry | CIMC Vehicles vs. Western Metal Materials | CIMC Vehicles vs. Porton Fine Chemicals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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