Correlation Between Chahua Modern and Shenzhen Kexin
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By analyzing existing cross correlation between Chahua Modern Housewares and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Chahua Modern 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 Chahua Modern with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Shenzhen Kexin.
Diversification Opportunities for Chahua Modern and Shenzhen Kexin
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chahua and Shenzhen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares 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 Chahua Modern 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 Chahua Modern Housewares 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 Chahua Modern i.e., Chahua Modern and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Chahua Modern and Shenzhen Kexin
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 0.92 times more return on investment than Shenzhen Kexin. However, Chahua Modern Housewares is 1.09 times less risky than Shenzhen Kexin. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.01 per unit of risk. If you would invest 816.00 in Chahua Modern Housewares on September 4, 2024 and sell it today you would earn a total of 1,390 from holding Chahua Modern Housewares or generate 170.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Chahua Modern Housewares |
| Shenzhen Kexin Commu |
Chahua Modern and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Shenzhen Kexin
The main advantage of trading using opposite Chahua Modern and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern 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.| Chahua Modern vs. Zhejiang Yayi Metal | Chahua Modern vs. Bomin Electronics Co | Chahua Modern vs. Nantong Haixing Electronics | Chahua Modern vs. Leyard Optoelectronic |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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