Correlation Between Kangxin New and Shenzhen Aisidi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kangxin New Materials and Shenzhen Aisidi Co, you can compare the effects of market volatilities on Kangxin New and Shenzhen Aisidi 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 Kangxin New with a short position of Shenzhen Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Shenzhen Aisidi.
Diversification Opportunities for Kangxin New and Shenzhen Aisidi
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangxin and Shenzhen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi and Kangxin New 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 Kangxin New Materials are associated (or correlated) with Shenzhen Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of Kangxin New i.e., Kangxin New and Shenzhen Aisidi go up and down completely randomly.
Pair Corralation between Kangxin New and Shenzhen Aisidi
Assuming the 90 days trading horizon Kangxin New Materials is expected to generate 1.11 times more return on investment than Shenzhen Aisidi. However, Kangxin New is 1.11 times more volatile than Shenzhen Aisidi Co. It trades about 0.23 of its potential returns per unit of risk. Shenzhen Aisidi Co is currently generating about -0.16 per unit of risk. If you would invest 235.00 in Kangxin New Materials on September 12, 2024 and sell it today you would earn a total of 51.00 from holding Kangxin New Materials or generate 21.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kangxin New Materials vs. Shenzhen Aisidi Co
Performance |
| Timeline |
| Kangxin New Materials |
| Shenzhen Aisidi |
Kangxin New and Shenzhen Aisidi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Shenzhen Aisidi
The main advantage of trading using opposite Kangxin New and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New position performs unexpectedly, Shenzhen Aisidi 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 Aisidi will offset losses from the drop in Shenzhen Aisidi's long position.| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Rongsheng Petrochemical Co |
| Shenzhen Aisidi vs. Elite Color Environmental | Shenzhen Aisidi vs. Beijing SPC Environment | Shenzhen Aisidi vs. Fujian Nanwang Environment | Shenzhen Aisidi vs. Changjiang Jinggong Steel |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |