Correlation Between Guangxi Wuzhou and Shenzhen Kexin
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Shenzhen Kexin.
Diversification Opportunities for Guangxi Wuzhou and Shenzhen Kexin
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangxi and Shenzhen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications 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 Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Shenzhen Kexin
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.42 times more return on investment than Shenzhen Kexin. However, Guangxi Wuzhou Communications is 2.37 times less risky than Shenzhen Kexin. It trades about 0.1 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.16 per unit of risk. If you would invest 374.00 in Guangxi Wuzhou Communications on August 30, 2024 and sell it today you would earn a total of 11.00 from holding Guangxi Wuzhou Communications or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Shenzhen Kexin Commu |
Guangxi Wuzhou and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Shenzhen Kexin
The main advantage of trading using opposite Guangxi Wuzhou and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. Biwin Storage Technology | Guangxi Wuzhou vs. PetroChina Co Ltd | Guangxi Wuzhou vs. Industrial and Commercial | Guangxi Wuzhou vs. China Construction Bank |
| Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. Bank of China | Shenzhen Kexin vs. China Construction Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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