Correlation Between CIMC Vehicles and Shenzhen Kexin
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By analyzing existing cross correlation between CIMC Vehicles Co and Shenzhen Kexin Communication, you can compare the effects of market volatilities on CIMC Vehicles 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 CIMC Vehicles with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Shenzhen Kexin.
Diversification Opportunities for CIMC Vehicles and Shenzhen Kexin
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CIMC and Shenzhen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co 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 CIMC Vehicles 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 CIMC Vehicles Co 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 CIMC Vehicles i.e., CIMC Vehicles and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Shenzhen Kexin
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 0.75 times more return on investment than Shenzhen Kexin. However, CIMC Vehicles Co is 1.33 times less risky than Shenzhen Kexin. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.02 per unit of risk. If you would invest 802.00 in CIMC Vehicles Co on September 3, 2024 and sell it today you would earn a total of 184.00 from holding CIMC Vehicles Co or generate 22.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| CIMC Vehicles |
| Shenzhen Kexin Commu |
CIMC Vehicles and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Shenzhen Kexin
The main advantage of trading using opposite CIMC Vehicles and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles 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.| CIMC Vehicles vs. Bangyan Technology Co | CIMC Vehicles vs. Uroica Mining Safety | CIMC Vehicles vs. Shengda Mining Co | CIMC Vehicles vs. Shenyang Huitian Thermal |
| Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Postal Savings Bank | Shenzhen Kexin vs. Bank of Communications |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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