Correlation Between Shenwu Energy and Sinosteel Engineering
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By analyzing existing cross correlation between Shenwu Energy Saving and Sinosteel Engineering and, you can compare the effects of market volatilities on Shenwu Energy and Sinosteel Engineering 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 Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Sinosteel Engineering.
Diversification Opportunities for Shenwu Energy and Sinosteel Engineering
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenwu and Sinosteel is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and 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 Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between Shenwu Energy and Sinosteel Engineering
Assuming the 90 days trading horizon Shenwu Energy is expected to generate 71.82 times less return on investment than Sinosteel Engineering. In addition to that, Shenwu Energy is 1.29 times more volatile than Sinosteel Engineering and. It trades about 0.0 of its total potential returns per unit of risk. Sinosteel Engineering and is currently generating about 0.03 per unit of volatility. If you would invest 568.00 in Sinosteel Engineering and on September 14, 2024 and sell it today you would earn a total of 134.00 from holding Sinosteel Engineering and or generate 23.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Sinosteel Engineering and
Performance |
| Timeline |
| Shenwu Energy Saving |
| Sinosteel Engineering and |
Shenwu Energy and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Sinosteel Engineering
The main advantage of trading using opposite Shenwu Energy and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering's long position.| Shenwu Energy vs. Lutian Machinery Co | Shenwu Energy vs. China Longyuan Power | Shenwu Energy vs. PetroChina Co Ltd | Shenwu Energy vs. Bank of China |
| Sinosteel Engineering vs. Ming Yang Smart | Sinosteel Engineering vs. 159681 | Sinosteel Engineering vs. 159005 | Sinosteel Engineering vs. Loctek Ergonomic Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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