Correlation Between Shenzhen Kexin and Guangxi Wuzhou
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Shenzhen Kexin and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Guangxi Wuzhou.
Diversification Opportunities for Shenzhen Kexin and Guangxi Wuzhou
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Guangxi is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Guangxi Wuzhou
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to generate 1.25 times more return on investment than Guangxi Wuzhou. However, Shenzhen Kexin is 1.25 times more volatile than Guangxi Wuzhou Communications. It trades about 0.1 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about -0.06 per unit of risk. If you would invest 1,205 in Shenzhen Kexin Communication on November 28, 2024 and sell it today you would earn a total of 39.00 from holding Shenzhen Kexin Communication or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Guangxi Wuzhou Commu |
Shenzhen Kexin and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Guangxi Wuzhou
The main advantage of trading using opposite Shenzhen Kexin and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Shenzhen Kexin vs. Penyao Environmental Protection | Shenzhen Kexin vs. Beijing Kaiwen Education | Shenzhen Kexin vs. Wangneng Environment Co | Shenzhen Kexin vs. Southern PublishingMedia Co |
| Guangxi Wuzhou vs. Taiji Computer Corp | Guangxi Wuzhou vs. Gifore Agricultural Machinery | Guangxi Wuzhou vs. Jilin Jlu Communication | Guangxi Wuzhou vs. Strait Innovation Internet |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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