Correlation Between Shenzhen Kaifa and IONQ

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Can any of the company-specific risk be diversified away by investing in both Shenzhen Kaifa and IONQ at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shenzhen Kaifa and IONQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenzhen Kaifa Technology and IONQ Inc, you can compare the effects of market volatilities on Shenzhen Kaifa and IONQ 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 Kaifa with a short position of IONQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kaifa and IONQ.

Diversification Opportunities for Shenzhen Kaifa and IONQ

0.57
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Shenzhen and IONQ is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kaifa Technology and IONQ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IONQ Inc and Shenzhen Kaifa 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 Kaifa Technology are associated (or correlated) with IONQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IONQ Inc has no effect on the direction of Shenzhen Kaifa i.e., Shenzhen Kaifa and IONQ go up and down completely randomly.

Pair Corralation between Shenzhen Kaifa and IONQ

Assuming the 90 days trading horizon Shenzhen Kaifa Technology is expected to generate 0.68 times more return on investment than IONQ. However, Shenzhen Kaifa Technology is 1.48 times less risky than IONQ. It trades about 0.15 of its potential returns per unit of risk. IONQ Inc is currently generating about 0.09 per unit of risk. If you would invest  1,928  in Shenzhen Kaifa Technology on August 15, 2025 and sell it today you would earn a total of  672.00  from holding Shenzhen Kaifa Technology or generate 34.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy93.65%
ValuesDaily Returns

Shenzhen Kaifa Technology  vs.  IONQ Inc

 Performance 
       Timeline  
Shenzhen Kaifa Technology 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Shenzhen Kaifa Technology are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Shenzhen Kaifa sustained solid returns over the last few months and may actually be approaching a breakup point.
IONQ Inc 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in IONQ Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, IONQ reported solid returns over the last few months and may actually be approaching a breakup point.

Shenzhen Kaifa and IONQ Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shenzhen Kaifa and IONQ

The main advantage of trading using opposite Shenzhen Kaifa and IONQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kaifa position performs unexpectedly, IONQ 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 IONQ will offset losses from the drop in IONQ's long position.
The idea behind Shenzhen Kaifa Technology and IONQ Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Transaction History module to view history of all your transactions and understand their impact on performance.

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