Correlation Between Shenzhen Centralcon and Shaanxi Energy
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Shaanxi Energy Investment, you can compare the effects of market volatilities on Shenzhen Centralcon and Shaanxi Energy 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 Centralcon with a short position of Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Shaanxi Energy.
Diversification Opportunities for Shenzhen Centralcon and Shaanxi Energy
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Shaanxi is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment and Shenzhen Centralcon 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 Centralcon Investment are associated (or correlated) with Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Shaanxi Energy
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 2.36 times more return on investment than Shaanxi Energy. However, Shenzhen Centralcon is 2.36 times more volatile than Shaanxi Energy Investment. It trades about 0.18 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.05 per unit of risk. If you would invest 528.00 in Shenzhen Centralcon Investment on September 13, 2024 and sell it today you would earn a total of 53.00 from holding Shenzhen Centralcon Investment or generate 10.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Shenzhen Centralcon |
| Shaanxi Energy Investment |
Shenzhen Centralcon and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Shaanxi Energy
The main advantage of trading using opposite Shenzhen Centralcon and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec Co |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. HOB Biotech Group | Shaanxi Energy vs. Ming Yang Smart | Shaanxi Energy vs. 159681 |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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