Correlation Between Shenzhen Kexin and Beken Corp
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Beken Corp, you can compare the effects of market volatilities on Shenzhen Kexin and Beken Corp 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 Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Beken Corp.
Diversification Opportunities for Shenzhen Kexin and Beken Corp
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Beken is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp 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 Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Beken Corp go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Beken Corp
Assuming the 90 days trading horizon Shenzhen Kexin is expected to generate 3.17 times less return on investment than Beken Corp. But when comparing it to its historical volatility, Shenzhen Kexin Communication is 1.12 times less risky than Beken Corp. It trades about 0.07 of its potential returns per unit of risk. Beken Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,741 in Beken Corp on October 18, 2024 and sell it today you would earn a total of 1,734 from holding Beken Corp or generate 99.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Beken Corp
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Beken Corp |
Shenzhen Kexin and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Beken Corp
The main advantage of trading using opposite Shenzhen Kexin and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp's long position.| Shenzhen Kexin vs. Zhengzhou Coal Mining | Shenzhen Kexin vs. Kidswant Children Products | Shenzhen Kexin vs. Hainan Mining Co | Shenzhen Kexin vs. Shenzhen Zhongzhuang Construction |
| Beken Corp vs. Shenzhen Kexin Communication | Beken Corp vs. Runjian Communication Co | Beken Corp vs. Fuda Alloy Materials | Beken Corp vs. Guangzhou Tinci Materials |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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