Correlation Between Shenzhen Kexin and Tongding Interconnection
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Tongding Interconnection Information, you can compare the effects of market volatilities on Shenzhen Kexin and Tongding Interconnection 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 Tongding Interconnection. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Tongding Interconnection.
Diversification Opportunities for Shenzhen Kexin and Tongding Interconnection
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Tongding is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Tongding Interconnection Infor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongding Interconnection 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 Tongding Interconnection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongding Interconnection has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Tongding Interconnection go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Tongding Interconnection
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Tongding Interconnection. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Kexin Communication is 1.05 times less risky than Tongding Interconnection. The stock trades about -0.04 of its potential returns per unit of risk. The Tongding Interconnection Information is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 453.00 in Tongding Interconnection Information on September 25, 2024 and sell it today you would earn a total of 18.00 from holding Tongding Interconnection Information or generate 3.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Kexin Communication vs. Tongding Interconnection Infor
Performance |
Timeline |
Shenzhen Kexin Commu |
Tongding Interconnection |
Shenzhen Kexin and Tongding Interconnection Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Kexin and Tongding Interconnection
The main advantage of trading using opposite Shenzhen Kexin and Tongding Interconnection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Tongding Interconnection 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 Tongding Interconnection will offset losses from the drop in Tongding Interconnection'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 |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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