Correlation Between Qi An and Shenzhen Kexin
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By analyzing existing cross correlation between Qi An Xin and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Qi An 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 Qi An with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qi An and Shenzhen Kexin.
Diversification Opportunities for Qi An and Shenzhen Kexin
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 688561 and Shenzhen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Qi An Xin 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 Qi An 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 Qi An Xin 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 Qi An i.e., Qi An and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Qi An and Shenzhen Kexin
Assuming the 90 days trading horizon Qi An Xin is expected to generate 0.85 times more return on investment than Shenzhen Kexin. However, Qi An Xin is 1.18 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 -0.2 per unit of risk. If you would invest 3,210 in Qi An Xin on August 25, 2024 and sell it today you would lose (66.00) from holding Qi An Xin or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qi An Xin vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Qi An Xin |
| Shenzhen Kexin Commu |
Qi An and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qi An and Shenzhen Kexin
The main advantage of trading using opposite Qi An and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qi An 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.| Qi An vs. Shenzhen Kexin Communication | Qi An vs. Changchun Faway Automobile | Qi An vs. CICT Mobile Communication | Qi An vs. Shanghai Yanpu Metal |
| Shenzhen Kexin vs. Ming Yang Smart | Shenzhen Kexin vs. 159005 | Shenzhen Kexin vs. Loctek Ergonomic Technology | Shenzhen Kexin vs. Xiamen East Asia |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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