Correlation Between Shenwu Energy and Great Sun
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By analyzing existing cross correlation between Shenwu Energy Saving and Great Sun Foods Co, you can compare the effects of market volatilities on Shenwu Energy and Great Sun 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 Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Great Sun.
Diversification Opportunities for Shenwu Energy and Great Sun
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenwu and Great is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods 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 Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Great Sun go up and down completely randomly.
Pair Corralation between Shenwu Energy and Great Sun
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to generate 1.55 times more return on investment than Great Sun. However, Shenwu Energy is 1.55 times more volatile than Great Sun Foods Co. It trades about 0.1 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.03 per unit of risk. If you would invest 352.00 in Shenwu Energy Saving on October 22, 2024 and sell it today you would earn a total of 32.00 from holding Shenwu Energy Saving or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Great Sun Foods Co
Performance |
| Timeline |
| Shenwu Energy Saving |
| Great Sun Foods |
Shenwu Energy and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Great Sun
The main advantage of trading using opposite Shenwu Energy and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun's long position.| Shenwu Energy vs. Hua Xia Bank | Shenwu Energy vs. AVIC Fund Management | Shenwu Energy vs. Bank of Suzhou | Shenwu Energy vs. Jiangsu Financial Leasing |
| Great Sun vs. Guangdong Qunxing Toys | Great Sun vs. 360 Security Technology | Great Sun vs. Shenzhen Zqgame | Great Sun vs. Lianhe Chemical 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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