Correlation Between Chengdu B and Shenzhen Kexin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu B ray Media and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Chengdu B 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 Chengdu B with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Shenzhen Kexin.
Diversification Opportunities for Chengdu B and Shenzhen Kexin
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Shenzhen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media 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 Chengdu B 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 Chengdu B ray Media 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 Chengdu B i.e., Chengdu B and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Chengdu B and Shenzhen Kexin
Assuming the 90 days trading horizon Chengdu B ray Media is expected to generate 0.78 times more return on investment than Shenzhen Kexin. However, Chengdu B ray Media is 1.27 times less risky than Shenzhen Kexin. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about 0.0 per unit of risk. If you would invest 511.00 in Chengdu B ray Media on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Chengdu B ray Media or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Chengdu B ray |
| Shenzhen Kexin Commu |
Chengdu B and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Shenzhen Kexin
The main advantage of trading using opposite Chengdu B and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B 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.| Chengdu B vs. Ming Yang Smart | Chengdu B vs. 159681 | Chengdu B vs. 159005 | Chengdu B vs. Loctek Ergonomic Technology |
| Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Bank of China | Shenzhen Kexin vs. Agricultural Bank of |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |