Correlation Between Shenzhen Kexin and Jadard Technology
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Jadard Technology A, you can compare the effects of market volatilities on Shenzhen Kexin and Jadard Technology 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 Jadard Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Jadard Technology.
Diversification Opportunities for Shenzhen Kexin and Jadard Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Jadard is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Jadard Technology A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadard Technology 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 Jadard Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadard Technology has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Jadard Technology go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Jadard Technology
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Jadard Technology. In addition to that, Shenzhen Kexin is 1.2 times more volatile than Jadard Technology A. It trades about -0.11 of its total potential returns per unit of risk. Jadard Technology A is currently generating about 0.01 per unit of volatility. If you would invest 2,497 in Jadard Technology A on September 13, 2024 and sell it today you would lose (5.00) from holding Jadard Technology A or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Jadard Technology A
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Jadard Technology |
Shenzhen Kexin and Jadard Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Jadard Technology
The main advantage of trading using opposite Shenzhen Kexin and Jadard Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Jadard Technology 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 Jadard Technology will offset losses from the drop in Jadard Technology'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 |
| Jadard Technology vs. Dr Peng Telecom | Jadard Technology vs. Zhengzhou Coal Mining | Jadard Technology vs. Shenzhen Kexin Communication | Jadard Technology vs. Guangdong Silvere Sci |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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