Correlation Between Shenwu Energy and HeNan Splendor
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By analyzing existing cross correlation between Shenwu Energy Saving and HeNan Splendor Science, you can compare the effects of market volatilities on Shenwu Energy and HeNan Splendor 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 HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and HeNan Splendor.
Diversification Opportunities for Shenwu Energy and HeNan Splendor
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenwu and HeNan is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science 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 HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and HeNan Splendor go up and down completely randomly.
Pair Corralation between Shenwu Energy and HeNan Splendor
Assuming the 90 days trading horizon Shenwu Energy is expected to generate 4.83 times less return on investment than HeNan Splendor. In addition to that, Shenwu Energy is 1.15 times more volatile than HeNan Splendor Science. It trades about 0.02 of its total potential returns per unit of risk. HeNan Splendor Science is currently generating about 0.11 per unit of volatility. If you would invest 484.00 in HeNan Splendor Science on November 3, 2024 and sell it today you would earn a total of 564.00 from holding HeNan Splendor Science or generate 116.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. HeNan Splendor Science
Performance |
| Timeline |
| Shenwu Energy Saving |
| HeNan Splendor Science |
Shenwu Energy and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and HeNan Splendor
The main advantage of trading using opposite Shenwu Energy and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Shenwu Energy vs. Tjk Machinery Tianjin | Shenwu Energy vs. Sinomach General Machinery | Shenwu Energy vs. Fujian Boss Software | Shenwu Energy vs. Masterwork Machinery |
| HeNan Splendor vs. Suzhou Oriental Semiconductor | HeNan Splendor vs. Emdoor Information Co | HeNan Splendor vs. Invengo Information Technology | HeNan Splendor vs. Bonree Data 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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