Correlation Between Shenwu Energy and Shenzhen Centralcon
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By analyzing existing cross correlation between Shenwu Energy Saving and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Shenwu Energy and Shenzhen Centralcon 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 Shenwu Energy with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Shenzhen Centralcon.
Diversification Opportunities for Shenwu Energy and Shenzhen Centralcon
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenwu and Shenzhen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Shenwu Energy 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 Shenwu Energy Saving are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Shenwu Energy and Shenzhen Centralcon
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to generate 1.08 times more return on investment than Shenzhen Centralcon. However, Shenwu Energy is 1.08 times more volatile than Shenzhen Centralcon Investment. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.02 per unit of risk. If you would invest 369.00 in Shenwu Energy Saving on October 4, 2024 and sell it today you would lose (20.00) from holding Shenwu Energy Saving or give up 5.42% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenwu Energy Saving vs. Shenzhen Centralcon Investment
Performance |
Timeline |
Shenwu Energy Saving |
Shenzhen Centralcon |
Shenwu Energy and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenwu Energy and Shenzhen Centralcon
The main advantage of trading using opposite Shenwu Energy and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Shenzhen Centralcon 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 Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.Shenwu Energy vs. Kweichow Moutai Co | Shenwu Energy vs. NAURA Technology Group | Shenwu Energy vs. Zhejiang Orient Gene | Shenwu Energy vs. APT Medical |
Shenzhen Centralcon vs. Cambricon Technologies Corp | Shenzhen Centralcon vs. SGSG Sciencetechnology Co | Shenzhen Centralcon vs. Loongson Technology Corp | Shenzhen Centralcon vs. Shenzhen Fortune Trend |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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