Correlation Between Shenwu Energy and Nanjing OLO
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By analyzing existing cross correlation between Shenwu Energy Saving and Nanjing OLO Home, you can compare the effects of market volatilities on Shenwu Energy and Nanjing OLO 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 Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Nanjing OLO.
Diversification Opportunities for Shenwu Energy and Nanjing OLO
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenwu and Nanjing is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home 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 Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Nanjing OLO go up and down completely randomly.
Pair Corralation between Shenwu Energy and Nanjing OLO
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to generate 2.38 times more return on investment than Nanjing OLO. However, Shenwu Energy is 2.38 times more volatile than Nanjing OLO Home. It trades about 0.05 of its potential returns per unit of risk. Nanjing OLO Home is currently generating about -0.01 per unit of risk. If you would invest 352.00 in Shenwu Energy Saving on October 23, 2024 and sell it today you would earn a total of 11.00 from holding Shenwu Energy Saving or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Nanjing OLO Home
Performance |
| Timeline |
| Shenwu Energy Saving |
| Nanjing OLO Home |
Shenwu Energy and Nanjing OLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Nanjing OLO
The main advantage of trading using opposite Shenwu Energy and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO's long position.| Shenwu Energy vs. Qilu Bank Co | Shenwu Energy vs. Digital China Information | Shenwu Energy vs. Ningbo Tech Bank Co | Shenwu Energy vs. CITIC Guoan Information |
| Nanjing OLO vs. Huasi Agricultural Development | Nanjing OLO vs. Ningbo Construction Co | Nanjing OLO vs. Qijing Machinery | Nanjing OLO vs. China Sports Industry |
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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