Correlation Between Shenzhen Kexin and Kangxin New
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Kangxin New Materials, you can compare the effects of market volatilities on Shenzhen Kexin and Kangxin 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 Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Kangxin New.
Diversification Opportunities for Shenzhen Kexin and Kangxin New
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Kangxin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials 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 Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Kangxin New go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Kangxin New
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Kangxin New. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Kexin Communication is 1.15 times less risky than Kangxin New. The stock trades about -0.22 of its potential returns per unit of risk. The Kangxin New Materials is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 221.00 in Kangxin New Materials on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Kangxin New Materials or generate 7.24% 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. Kangxin New Materials
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Kangxin New Materials |
Shenzhen Kexin and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Kangxin New
The main advantage of trading using opposite Shenzhen Kexin and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Kangxin 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 Kangxin New will offset losses from the drop in Kangxin 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 |
| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Shandong Gold Mining |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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