Correlation Between Shenzhen Kexin and China Molybdenum
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By analyzing existing cross correlation between Shenzhen Kexin Communication and China Molybdenum Co, you can compare the effects of market volatilities on Shenzhen Kexin and China Molybdenum 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 China Molybdenum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and China Molybdenum.
Diversification Opportunities for Shenzhen Kexin and China Molybdenum
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and China is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and China Molybdenum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Molybdenum 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 China Molybdenum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Molybdenum has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and China Molybdenum go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and China Molybdenum
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to generate 1.56 times more return on investment than China Molybdenum. However, Shenzhen Kexin is 1.56 times more volatile than China Molybdenum Co. It trades about 0.07 of its potential returns per unit of risk. China Molybdenum Co is currently generating about -0.02 per unit of risk. If you would invest 1,075 in Shenzhen Kexin Communication on September 1, 2024 and sell it today you would earn a total of 286.00 from holding Shenzhen Kexin Communication or generate 26.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. China Molybdenum Co
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| China Molybdenum |
Shenzhen Kexin and China Molybdenum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and China Molybdenum
The main advantage of trading using opposite Shenzhen Kexin and China Molybdenum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, China Molybdenum 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 China Molybdenum will offset losses from the drop in China Molybdenum's long position.| Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. Kweichow Moutai Co | Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. China Mobile Limited |
| China Molybdenum vs. Touchstone International Medical | China Molybdenum vs. Bomin Electronics Co | China Molybdenum vs. Qingdao Haier Biomedical | China Molybdenum vs. Cofoe Medical Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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