Correlation Between Shenwu Energy and Hengli Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenwu Energy Saving and Hengli Industrial Development, you can compare the effects of market volatilities on Shenwu Energy and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Hengli Industrial.
Diversification Opportunities for Shenwu Energy and Hengli Industrial
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenwu and Hengli is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Hengli Industrial go up and down completely randomly.
Pair Corralation between Shenwu Energy and Hengli Industrial
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to generate 1.1 times more return on investment than Hengli Industrial. However, Shenwu Energy is 1.1 times more volatile than Hengli Industrial Development. It trades about 0.05 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.03 per unit of risk. If you would invest 302.00 in Shenwu Energy Saving on October 12, 2024 and sell it today you would earn a total of 87.00 from holding Shenwu Energy Saving or generate 28.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Hengli Industrial Development
Performance |
| Timeline |
| Shenwu Energy Saving |
| Hengli Industrial |
Shenwu Energy and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Hengli Industrial
The main advantage of trading using opposite Shenwu Energy and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Shenwu Energy vs. CITIC Guoan Information | Shenwu Energy vs. Chengdu Spaceon Electronics | Shenwu Energy vs. Digital China Information | Shenwu Energy vs. Shanghai CEO Environmental |
| Hengli Industrial vs. Tsingtao Brewery Co | Hengli Industrial vs. Dawning Information Industry | Hengli Industrial vs. Wuhan Yangtze Communication | Hengli Industrial vs. Unisplendour Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |