Correlation Between Shenwu Energy and Everjoy Health
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By analyzing existing cross correlation between Shenwu Energy Saving and Everjoy Health Group, you can compare the effects of market volatilities on Shenwu Energy and Everjoy Health 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 Everjoy Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Everjoy Health.
Diversification Opportunities for Shenwu Energy and Everjoy Health
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenwu and Everjoy is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Everjoy Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everjoy Health Group 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 Everjoy Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everjoy Health Group has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Everjoy Health go up and down completely randomly.
Pair Corralation between Shenwu Energy and Everjoy Health
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to generate 0.99 times more return on investment than Everjoy Health. However, Shenwu Energy Saving is 1.01 times less risky than Everjoy Health. It trades about -0.06 of its potential returns per unit of risk. Everjoy Health Group is currently generating about -0.1 per unit of risk. If you would invest 422.00 in Shenwu Energy Saving on October 12, 2024 and sell it today you would lose (33.00) from holding Shenwu Energy Saving or give up 7.82% 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. Everjoy Health Group
Performance |
| Timeline |
| Shenwu Energy Saving |
| Everjoy Health Group |
Shenwu Energy and Everjoy Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Everjoy Health
The main advantage of trading using opposite Shenwu Energy and Everjoy Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Everjoy Health 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 Everjoy Health will offset losses from the drop in Everjoy Health'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 |
| Everjoy Health vs. China World Trade | Everjoy Health vs. Bank of Suzhou | Everjoy Health vs. Shenwu Energy Saving | Everjoy Health vs. Bohai Leasing Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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