Correlation Between Shenzhen Kexin and Lushang Property
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Lushang Property Co, you can compare the effects of market volatilities on Shenzhen Kexin and Lushang Property 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 Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Lushang Property.
Diversification Opportunities for Shenzhen Kexin and Lushang Property
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Lushang is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property 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 Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Lushang Property go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Lushang Property
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Lushang Property. In addition to that, Shenzhen Kexin is 1.95 times more volatile than Lushang Property Co. It trades about -0.11 of its total potential returns per unit of risk. Lushang Property Co is currently generating about 0.02 per unit of volatility. If you would invest 732.00 in Lushang Property Co on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Lushang Property Co or generate 0.41% 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. Lushang Property Co
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Lushang Property |
Shenzhen Kexin and Lushang Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Lushang Property
The main advantage of trading using opposite Shenzhen Kexin and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Lushang Property 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 Lushang Property will offset losses from the drop in Lushang Property's long position.| Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Bank of China | Shenzhen Kexin vs. Agricultural Bank of |
| Lushang Property vs. Wuhan Yangtze Communication | Lushang Property vs. Xinjiang Communications Construction | Lushang Property vs. Shenzhen Kexin Communication | Lushang Property vs. Guangdong Jingyi Metal |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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