Correlation Between SI TECH and Shenzhen Kexin
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By analyzing existing cross correlation between SI TECH Information Technology and Shenzhen Kexin Communication, you can compare the effects of market volatilities on SI TECH and Shenzhen Kexin 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 SI TECH with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SI TECH and Shenzhen Kexin.
Diversification Opportunities for SI TECH and Shenzhen Kexin
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 300608 and Shenzhen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SI TECH Information Technology and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu and SI TECH 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 SI TECH Information Technology are associated (or correlated) with Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of SI TECH i.e., SI TECH and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between SI TECH and Shenzhen Kexin
Assuming the 90 days trading horizon SI TECH Information Technology is expected to generate 1.17 times more return on investment than Shenzhen Kexin. However, SI TECH is 1.17 times more volatile than Shenzhen Kexin Communication. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about 0.05 per unit of risk. If you would invest 920.00 in SI TECH Information Technology on October 30, 2024 and sell it today you would earn a total of 310.00 from holding SI TECH Information Technology or generate 33.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SI TECH Information Technology vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| SI TECH Information |
| Shenzhen Kexin Commu |
SI TECH and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SI TECH and Shenzhen Kexin
The main advantage of trading using opposite SI TECH and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SI TECH position performs unexpectedly, Shenzhen Kexin 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 Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin's long position.| SI TECH vs. Sino Platinum Metals Co | SI TECH vs. Anhui Transport Consulting | SI TECH vs. Jiangsu Jinling Sports | SI TECH vs. Chongqing Shunbo Aluminum |
| Shenzhen Kexin vs. Bus Online Co | Shenzhen Kexin vs. Holitech Technology Co | Shenzhen Kexin vs. Gome Telecom Equipment | Shenzhen Kexin vs. Cultural Investment Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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