Correlation Between Kangxin New and Shenzhen Aisidi
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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
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kangxin and Shenzhen is 0.37. 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 is expected to generate 1.2 times less return on investment than Shenzhen Aisidi. But when comparing it to its historical volatility, Kangxin New Materials is 1.32 times less risky than Shenzhen Aisidi. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Aisidi Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 986.00 in Shenzhen Aisidi Co on November 3, 2024 and sell it today you would earn a total of 281.00 from holding Shenzhen Aisidi Co or generate 28.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| 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. Shandong Gold Mining |
| Shenzhen Aisidi vs. Jiangsu GDK Biotechnology | Shenzhen Aisidi vs. Yili Chuanning Biotechnology | Shenzhen Aisidi vs. Shanghai Rightongene Biotechnology | Shenzhen Aisidi vs. Linktel Technologies Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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