Correlation Between A Zenith and Kangxin New
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By analyzing existing cross correlation between A Zenith Home Furnishings and Kangxin New Materials, you can compare the effects of market volatilities on A Zenith and Kangxin New 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 A Zenith with a short position of Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of A Zenith and Kangxin New.
Diversification Opportunities for A Zenith and Kangxin New
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 603389 and Kangxin is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding A Zenith Home Furnishings and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials and A Zenith 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 A Zenith Home Furnishings are associated (or correlated) with Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of A Zenith i.e., A Zenith and Kangxin New go up and down completely randomly.
Pair Corralation between A Zenith and Kangxin New
Assuming the 90 days trading horizon A Zenith Home Furnishings is expected to under-perform the Kangxin New. In addition to that, A Zenith is 1.28 times more volatile than Kangxin New Materials. It trades about -0.03 of its total potential returns per unit of risk. Kangxin New Materials is currently generating about 0.04 per unit of volatility. If you would invest 186.00 in Kangxin New Materials on October 10, 2024 and sell it today you would earn a total of 10.00 from holding Kangxin New Materials or generate 5.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
A Zenith Home Furnishings vs. Kangxin New Materials
Performance |
Timeline |
A Zenith Home |
Kangxin New Materials |
A Zenith and Kangxin New Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with A Zenith and Kangxin New
The main advantage of trading using opposite A Zenith and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A Zenith position performs unexpectedly, Kangxin New 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 Kangxin New will offset losses from the drop in Kangxin New's long position.A Zenith vs. Kweichow Moutai Co | ||
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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