Correlation Between Kangxin New and Shanghai Rural
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By analyzing existing cross correlation between Kangxin New Materials and Shanghai Rural Commercial, you can compare the effects of market volatilities on Kangxin New and Shanghai Rural 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 Shanghai Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Shanghai Rural.
Diversification Opportunities for Kangxin New and Shanghai Rural
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangxin and Shanghai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials and Shanghai Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rural Commercial 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 Shanghai Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rural Commercial has no effect on the direction of Kangxin New i.e., Kangxin New and Shanghai Rural go up and down completely randomly.
Pair Corralation between Kangxin New and Shanghai Rural
Assuming the 90 days trading horizon Kangxin New is expected to generate 9.27 times less return on investment than Shanghai Rural. In addition to that, Kangxin New is 2.02 times more volatile than Shanghai Rural Commercial. It trades about 0.0 of its total potential returns per unit of risk. Shanghai Rural Commercial is currently generating about 0.08 per unit of volatility. If you would invest 503.00 in Shanghai Rural Commercial on September 5, 2024 and sell it today you would earn a total of 295.00 from holding Shanghai Rural Commercial or generate 58.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kangxin New Materials vs. Shanghai Rural Commercial
Performance |
| Timeline |
| Kangxin New Materials |
| Shanghai Rural Commercial |
Kangxin New and Shanghai Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Shanghai Rural
The main advantage of trading using opposite Kangxin New and Shanghai Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New position performs unexpectedly, Shanghai Rural 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 Shanghai Rural will offset losses from the drop in Shanghai Rural's long position.| Kangxin New vs. Zhongyin Babi Food | Kangxin New vs. Healthcare Co | Kangxin New vs. Shanghai Rongtai Health | Kangxin New vs. China Life Insurance |
| Shanghai Rural vs. Kangxin New Materials | Shanghai Rural vs. Nuode Investment Co | Shanghai Rural vs. Advanced Technology Materials | Shanghai Rural vs. Zoje Resources Investment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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