Correlation Between Shenwu Energy and Lecron Energy
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By analyzing existing cross correlation between Shenwu Energy Saving and Lecron Energy Saving, you can compare the effects of market volatilities on Shenwu Energy and Lecron Energy 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 Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Lecron Energy.
Diversification Opportunities for Shenwu Energy and Lecron Energy
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenwu and Lecron is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving 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 Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Lecron Energy go up and down completely randomly.
Pair Corralation between Shenwu Energy and Lecron Energy
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to generate 0.84 times more return on investment than Lecron Energy. However, Shenwu Energy Saving is 1.19 times less risky than Lecron Energy. It trades about 0.0 of its potential returns per unit of risk. Lecron Energy Saving is currently generating about -0.02 per unit of risk. If you would invest 482.00 in Shenwu Energy Saving on October 16, 2024 and sell it today you would lose (93.00) from holding Shenwu Energy Saving or give up 19.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Lecron Energy Saving
Performance |
| Timeline |
| Shenwu Energy Saving |
| Lecron Energy Saving |
Shenwu Energy and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Lecron Energy
The main advantage of trading using opposite Shenwu Energy and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.| Shenwu Energy vs. Winner Medical Co | Shenwu Energy vs. Inspur Software Co | Shenwu Energy vs. Shuhua Sports Co | Shenwu Energy vs. Beijing Baolande Software |
| Lecron Energy vs. Songz Automobile Air | Lecron Energy vs. Beijing Kingsoft Office | Lecron Energy vs. Sinomach Automobile Co | Lecron Energy vs. Haima Automobile Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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