Correlation Between Shenzhen Kexin and Hi Trend
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Hi Trend TechCo, you can compare the effects of market volatilities on Shenzhen Kexin and Hi Trend 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 Hi Trend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Hi Trend.
Diversification Opportunities for Shenzhen Kexin and Hi Trend
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and 688391 is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Hi Trend TechCo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Trend TechCo 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 Hi Trend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hi Trend TechCo has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Hi Trend go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Hi Trend
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Hi Trend. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Kexin Communication is 1.04 times less risky than Hi Trend. The stock trades about -0.2 of its potential returns per unit of risk. The Hi Trend TechCo is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 3,362 in Hi Trend TechCo on August 25, 2024 and sell it today you would lose (237.00) from holding Hi Trend TechCo or give up 7.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Hi Trend TechCo
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Hi Trend TechCo |
Shenzhen Kexin and Hi Trend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Hi Trend
The main advantage of trading using opposite Shenzhen Kexin and Hi Trend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Hi Trend 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 Hi Trend will offset losses from the drop in Hi Trend's long position.| Shenzhen Kexin vs. Ming Yang Smart | Shenzhen Kexin vs. 159005 | Shenzhen Kexin vs. Loctek Ergonomic Technology | Shenzhen Kexin vs. Xiamen East Asia |
| Hi Trend vs. Anhui Transport Consulting | Hi Trend vs. State Grid InformationCommunication | Hi Trend vs. Shanghai Metersbonwe FashionAccessories | Hi Trend vs. Xiangyang Automobile Bearing |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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