Correlation Between Kangxin New and Shenzhen Kexin
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By analyzing existing cross correlation between Kangxin New Materials and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Kangxin New 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 Kangxin New with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Shenzhen Kexin.
Diversification Opportunities for Kangxin New and Shenzhen Kexin
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangxin and Shenzhen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials 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 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 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 Kangxin New i.e., Kangxin New and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Kangxin New and Shenzhen Kexin
Assuming the 90 days trading horizon Kangxin New Materials is expected to generate 0.8 times more return on investment than Shenzhen Kexin. However, Kangxin New Materials is 1.25 times less risky than Shenzhen Kexin. It trades about 0.3 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about 0.13 per unit of risk. If you would invest 138.00 in Kangxin New Materials on August 29, 2024 and sell it today you would earn a total of 108.00 from holding Kangxin New Materials or generate 78.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangxin New Materials vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Kangxin New Materials |
| Shenzhen Kexin Commu |
Kangxin New and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Shenzhen Kexin
The main advantage of trading using opposite Kangxin New and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New 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.| Kangxin New vs. CITIC Guoan Information | Kangxin New vs. Invengo Information Technology | Kangxin New vs. Peoples Insurance of | Kangxin New vs. YLZ Information Tech |
| Shenzhen Kexin vs. Hainan Mining Co | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Western Metal Materials | Shenzhen Kexin vs. Xiamen Bank 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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