Correlation Between Shantui Construction and Shenyang Blue
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By analyzing existing cross correlation between Shantui Construction Machinery and Shenyang Blue Silver, you can compare the effects of market volatilities on Shantui Construction and Shenyang Blue 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 Shantui Construction with a short position of Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and Shenyang Blue.
Diversification Opportunities for Shantui Construction and Shenyang Blue
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shantui and Shenyang is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver and Shantui Construction 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 Shantui Construction Machinery are associated (or correlated) with Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Shantui Construction i.e., Shantui Construction and Shenyang Blue go up and down completely randomly.
Pair Corralation between Shantui Construction and Shenyang Blue
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to generate 0.68 times more return on investment than Shenyang Blue. However, Shantui Construction Machinery is 1.47 times less risky than Shenyang Blue. It trades about 0.0 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about -0.28 per unit of risk. If you would invest 943.00 in Shantui Construction Machinery on October 16, 2024 and sell it today you would lose (2.00) from holding Shantui Construction Machinery or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. Shenyang Blue Silver
Performance |
| Timeline |
| Shantui Construction |
| Shenyang Blue Silver |
Shantui Construction and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and Shenyang Blue
The main advantage of trading using opposite Shantui Construction and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.| Shantui Construction vs. Runjian Communication Co | Shantui Construction vs. Huatian Hotel Group | Shantui Construction vs. Telling Telecommunication Holding | Shantui Construction vs. Bus Online Co |
| Shenyang Blue vs. Songz Automobile Air | Shenyang Blue vs. Tongyu Communication | Shenyang Blue vs. Gansu Huangtai Wine marketing | Shenyang Blue vs. Ningbo Fangzheng Automobile |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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