Correlation Between Shenzhen Kexin and Jiangsu GDK
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Shenzhen Kexin and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Jiangsu GDK.
Diversification Opportunities for Shenzhen Kexin and Jiangsu GDK
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Jiangsu is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Jiangsu GDK
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to generate 1.31 times more return on investment than Jiangsu GDK. However, Shenzhen Kexin is 1.31 times more volatile than Jiangsu GDK Biotechnology. It trades about -0.07 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.33 per unit of risk. If you would invest 1,361 in Shenzhen Kexin Communication on October 30, 2024 and sell it today you would lose (156.00) from holding Shenzhen Kexin Communication or give up 11.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Jiangsu GDK Biotechnology |
Shenzhen Kexin and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Jiangsu GDK
The main advantage of trading using opposite Shenzhen Kexin and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Shenzhen Kexin vs. Bus Online Co | Shenzhen Kexin vs. Holitech Technology Co | Shenzhen Kexin vs. Gome Telecom Equipment | Shenzhen Kexin vs. Cultural Investment Holdings |
| Jiangsu GDK vs. Heilongjiang Transport Development | Jiangsu GDK vs. Lander Sports Development | Jiangsu GDK vs. Guangzhou Tinci Materials | Jiangsu GDK vs. Jiangnan Mould Plastic |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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