Correlation Between INKON Life and Shenzhen Agricultural
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By analyzing existing cross correlation between INKON Life Technology and Shenzhen Agricultural Products, you can compare the effects of market volatilities on INKON Life and Shenzhen Agricultural 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 INKON Life with a short position of Shenzhen Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of INKON Life and Shenzhen Agricultural.
Diversification Opportunities for INKON Life and Shenzhen Agricultural
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INKON and Shenzhen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding INKON Life Technology and Shenzhen Agricultural Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Agricultural and INKON Life 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 INKON Life Technology are associated (or correlated) with Shenzhen Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Agricultural has no effect on the direction of INKON Life i.e., INKON Life and Shenzhen Agricultural go up and down completely randomly.
Pair Corralation between INKON Life and Shenzhen Agricultural
Assuming the 90 days trading horizon INKON Life is expected to generate 1.06 times less return on investment than Shenzhen Agricultural. In addition to that, INKON Life is 1.79 times more volatile than Shenzhen Agricultural Products. It trades about 0.14 of its total potential returns per unit of risk. Shenzhen Agricultural Products is currently generating about 0.27 per unit of volatility. If you would invest 537.00 in Shenzhen Agricultural Products on September 14, 2024 and sell it today you would earn a total of 236.00 from holding Shenzhen Agricultural Products or generate 43.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
INKON Life Technology vs. Shenzhen Agricultural Products
Performance |
Timeline |
INKON Life Technology |
Shenzhen Agricultural |
INKON Life and Shenzhen Agricultural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INKON Life and Shenzhen Agricultural
The main advantage of trading using opposite INKON Life and Shenzhen Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INKON Life position performs unexpectedly, Shenzhen Agricultural 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 Agricultural will offset losses from the drop in Shenzhen Agricultural's long position.INKON Life vs. Industrial and Commercial | INKON Life vs. China Construction Bank | INKON Life vs. Agricultural Bank of | INKON Life vs. Bank of China |
Shenzhen Agricultural vs. Shanxi Lanhua Sci Tech | Shenzhen Agricultural vs. INKON Life Technology | Shenzhen Agricultural vs. Kuang Chi Technologies | Shenzhen Agricultural vs. Guangzhou Jinyi Media |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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