Correlation Between Shenzhen Kexin and Bank of China
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Bank of China, you can compare the effects of market volatilities on Shenzhen Kexin and Bank of China 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 Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Bank of China.
Diversification Opportunities for Shenzhen Kexin and Bank of China
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhen and Bank is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Bank of China go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Bank of China
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Bank of China. In addition to that, Shenzhen Kexin is 3.37 times more volatile than Bank of China. It trades about -0.28 of its total potential returns per unit of risk. Bank of China is currently generating about 0.23 per unit of volatility. If you would invest 518.00 in Bank of China on October 14, 2024 and sell it today you would earn a total of 27.00 from holding Bank of China or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Bank of China
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Bank of China |
Shenzhen Kexin and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Bank of China
The main advantage of trading using opposite Shenzhen Kexin and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| Shenzhen Kexin vs. YiDong Electronics Technology | Shenzhen Kexin vs. Success Electronics | Shenzhen Kexin vs. Beijing Yanjing Brewery | Shenzhen Kexin vs. Tianshan Aluminum Group |
| Bank of China vs. XinJiang GuoTong Pipeline | Bank of China vs. Guangzhou Haozhi Industrial | Bank of China vs. Hengli Industrial Development | Bank of China vs. Pengxin International 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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