Correlation Between Shenzhen Kexin and TianJin 712
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By analyzing existing cross correlation between Shenzhen Kexin Communication and TianJin 712 Communication, you can compare the effects of market volatilities on Shenzhen Kexin and TianJin 712 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 TianJin 712. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and TianJin 712.
Diversification Opportunities for Shenzhen Kexin and TianJin 712
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and TianJin is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and TianJin 712 Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TianJin 712 Communication 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 TianJin 712. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TianJin 712 Communication has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and TianJin 712 go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and TianJin 712
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the TianJin 712. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Kexin Communication is 1.32 times less risky than TianJin 712. The stock trades about -0.15 of its potential returns per unit of risk. The TianJin 712 Communication is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,856 in TianJin 712 Communication on September 15, 2024 and sell it today you would earn a total of 191.00 from holding TianJin 712 Communication or generate 10.29% 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. TianJin 712 Communication
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| TianJin 712 Communication |
Shenzhen Kexin and TianJin 712 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and TianJin 712
The main advantage of trading using opposite Shenzhen Kexin and TianJin 712 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, TianJin 712 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 TianJin 712 will offset losses from the drop in TianJin 712'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 |
| TianJin 712 vs. Industrial and Commercial | TianJin 712 vs. China Construction Bank | TianJin 712 vs. Bank of China | TianJin 712 vs. Agricultural Bank of |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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