Correlation Between Shenzhen Kexin and Sinosteel Luonai
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Shenzhen Kexin and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Sinosteel Luonai.
Diversification Opportunities for Shenzhen Kexin and Sinosteel Luonai
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Sinosteel is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Sinosteel Luonai
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to generate 1.62 times more return on investment than Sinosteel Luonai. However, Shenzhen Kexin is 1.62 times more volatile than Sinosteel Luonai Materials. It trades about 0.0 of its potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about -0.03 per unit of risk. If you would invest 1,661 in Shenzhen Kexin Communication on September 1, 2024 and sell it today you would lose (300.00) from holding Shenzhen Kexin Communication or give up 18.06% 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. Sinosteel Luonai Materials
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Sinosteel Luonai Mat |
Shenzhen Kexin and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Sinosteel Luonai
The main advantage of trading using opposite Shenzhen Kexin and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai'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 |
| Sinosteel Luonai vs. Hangzhou Minsheng Healthcare | Sinosteel Luonai vs. Yunnan Jianzhijia Health Chain | Sinosteel Luonai vs. Everjoy Health Group | Sinosteel Luonai vs. By health |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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