Correlation Between Shenzhen and Kuang Chi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen AV Display Co and Kuang Chi Technologies, you can compare the effects of market volatilities on Shenzhen and Kuang Chi 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 with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Kuang Chi.
Diversification Opportunities for Shenzhen and Kuang Chi
Modest diversification
The 3 months correlation between Shenzhen and Kuang is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies and Shenzhen 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 AV Display Co are associated (or correlated) with Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Shenzhen i.e., Shenzhen and Kuang Chi go up and down completely randomly.
Pair Corralation between Shenzhen and Kuang Chi
Assuming the 90 days trading horizon Shenzhen is expected to generate 2.7 times less return on investment than Kuang Chi. In addition to that, Shenzhen is 1.18 times more volatile than Kuang Chi Technologies. It trades about 0.02 of its total potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.07 per unit of volatility. If you would invest 1,858 in Kuang Chi Technologies on October 27, 2024 and sell it today you would earn a total of 2,249 from holding Kuang Chi Technologies or generate 121.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Kuang Chi Technologies
Performance |
| Timeline |
| Shenzhen AV Display |
| Kuang Chi Technologies |
Shenzhen and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Kuang Chi
The main advantage of trading using opposite Shenzhen and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Shenzhen vs. Yindu Kitchen Equipment | Shenzhen vs. Beijing Bewinner Communications | Shenzhen vs. Bank of Communications | Shenzhen vs. Aba Chemicals Corp |
| Kuang Chi vs. Meinian Onehealth Healthcare | Kuang Chi vs. Mingchen Health Co | Kuang Chi vs. Tonghua Grape Wine | Kuang Chi vs. Shenzhen Topway Video |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |