Correlation Between Shenwu Energy and XinJiang GuoTong
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By analyzing existing cross correlation between Shenwu Energy Saving and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Shenwu Energy and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and XinJiang GuoTong.
Diversification Opportunities for Shenwu Energy and XinJiang GuoTong
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenwu and XinJiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Shenwu Energy and XinJiang GuoTong
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to generate 1.3 times more return on investment than XinJiang GuoTong. However, Shenwu Energy is 1.3 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.05 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.06 per unit of risk. If you would invest 307.00 in Shenwu Energy Saving on September 3, 2024 and sell it today you would earn a total of 61.00 from holding Shenwu Energy Saving or generate 19.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Shenwu Energy Saving |
| XinJiang GuoTong Pipeline |
Shenwu Energy and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and XinJiang GuoTong
The main advantage of trading using opposite Shenwu Energy and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Shenwu Energy vs. Shanghai Action Education | Shenwu Energy vs. Offcn Education Technology | Shenwu Energy vs. Hubeiyichang Transportation Group | Shenwu Energy vs. Shanghai Broadband Technology |
| XinJiang GuoTong vs. Iat Automobile Technology | XinJiang GuoTong vs. Sinomach Automobile Co | XinJiang GuoTong vs. Guangzhou Automobile Group | XinJiang GuoTong vs. Ningxia Younglight Chemicals |
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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