Correlation Between Shenwu Energy and Shenzhen MYS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenwu Energy Saving and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Shenwu Energy and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Shenzhen MYS.
Diversification Opportunities for Shenwu Energy and Shenzhen MYS
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenwu and Shenzhen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Shenwu Energy and Shenzhen MYS
Assuming the 90 days trading horizon Shenwu Energy is expected to generate 96.91 times less return on investment than Shenzhen MYS. In addition to that, Shenwu Energy is 1.49 times more volatile than Shenzhen MYS Environmental. It trades about 0.0 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.05 per unit of volatility. If you would invest 282.00 in Shenzhen MYS Environmental on September 14, 2024 and sell it today you would earn a total of 132.00 from holding Shenzhen MYS Environmental or generate 46.81% 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. Shenzhen MYS Environmental
Performance |
| Timeline |
| Shenwu Energy Saving |
| Shenzhen MYS Environ |
Shenwu Energy and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Shenzhen MYS
The main advantage of trading using opposite Shenwu Energy and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS'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 |
| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |