Correlation Between Shenzhen Kexin and Jiangsu Seagull
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Shenzhen Kexin and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Jiangsu Seagull.
Diversification Opportunities for Shenzhen Kexin and Jiangsu Seagull
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Jiangsu is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Jiangsu Seagull
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Jiangsu Seagull. In addition to that, Shenzhen Kexin is 1.24 times more volatile than Jiangsu Seagull Cooling. It trades about -0.17 of its total potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about -0.13 per unit of volatility. If you would invest 1,005 in Jiangsu Seagull Cooling on August 28, 2024 and sell it today you would lose (84.00) from holding Jiangsu Seagull Cooling or give up 8.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Jiangsu Seagull Cooling |
Shenzhen Kexin and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Jiangsu Seagull
The main advantage of trading using opposite Shenzhen Kexin and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Shenzhen Kexin vs. Shenzhen MYS Environmental | Shenzhen Kexin vs. AVIC Fund Management | Shenzhen Kexin vs. Shenzhen Bingchuan Network | Shenzhen Kexin vs. Penghua Shenzhen Energy |
| Jiangsu Seagull vs. Guangdong Liantai Environmental | Jiangsu Seagull vs. Eit Environmental Development | Jiangsu Seagull vs. Gansu Jiu Steel | Jiangsu Seagull vs. Hangzhou Pinming Software |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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