Correlation Between Ye Chiu and Shenzhen Kexin
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By analyzing existing cross correlation between Ye Chiu Metal and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Shenzhen Kexin.
Diversification Opportunities for Ye Chiu and Shenzhen Kexin
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Ye Chiu and Shenzhen Kexin
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 0.63 times more return on investment than Shenzhen Kexin. However, Ye Chiu Metal is 1.59 times less risky than Shenzhen Kexin. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.22 per unit of risk. If you would invest 270.00 in Ye Chiu Metal on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Ye Chiu Metal or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Ye Chiu Metal |
| Shenzhen Kexin Commu |
Ye Chiu and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Shenzhen Kexin
The main advantage of trading using opposite Ye Chiu and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Rongsheng Petrochemical Co |
| Shenzhen Kexin vs. Anhui Fuhuang Steel | Shenzhen Kexin vs. Guangdong Liantai Environmental | Shenzhen Kexin vs. Anyang Iron Steel | Shenzhen Kexin vs. CSSC Offshore Marine |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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