Correlation Between Shenzhen Kexin and Shenzhen Topway
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Shenzhen Topway Video, you can compare the effects of market volatilities on Shenzhen Kexin and Shenzhen Topway 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 Shenzhen Kexin with a short position of Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Shenzhen Topway.
Diversification Opportunities for Shenzhen Kexin and Shenzhen Topway
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Shenzhen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video and Shenzhen Kexin 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 Shenzhen Kexin Communication are associated (or correlated) with Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Shenzhen Topway
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to generate 1.19 times more return on investment than Shenzhen Topway. However, Shenzhen Kexin is 1.19 times more volatile than Shenzhen Topway Video. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about -0.04 per unit of risk. If you would invest 1,506 in Shenzhen Kexin Communication on September 25, 2024 and sell it today you would lose (169.00) from holding Shenzhen Kexin Communication or give up 11.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Kexin Communication vs. Shenzhen Topway Video
Performance |
Timeline |
Shenzhen Kexin Commu |
Shenzhen Topway Video |
Shenzhen Kexin and Shenzhen Topway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Kexin and Shenzhen Topway
The main advantage of trading using opposite Shenzhen Kexin and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Shenzhen Topway 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 Topway will offset losses from the drop in Shenzhen Topway's long position.Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Bank of China |
Shenzhen Topway vs. Industrial and Commercial | Shenzhen Topway vs. Kweichow Moutai Co | Shenzhen Topway vs. Agricultural Bank of | Shenzhen Topway vs. China Mobile Limited |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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