Correlation Between Shenwu Energy and Shanghai Shuixing
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By analyzing existing cross correlation between Shenwu Energy Saving and Shanghai Shuixing Home, you can compare the effects of market volatilities on Shenwu Energy and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Shanghai Shuixing.
Diversification Opportunities for Shenwu Energy and Shanghai Shuixing
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenwu and Shanghai is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Shenwu Energy and Shanghai Shuixing
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to generate 1.58 times more return on investment than Shanghai Shuixing. However, Shenwu Energy is 1.58 times more volatile than Shanghai Shuixing Home. It trades about 0.02 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.01 per unit of risk. If you would invest 307.00 in Shenwu Energy Saving on November 3, 2024 and sell it today you would lose (7.00) from holding Shenwu Energy Saving or give up 2.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Shenwu Energy Saving |
| Shanghai Shuixing Home |
Shenwu Energy and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Shanghai Shuixing
The main advantage of trading using opposite Shenwu Energy and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing'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 |
| Shanghai Shuixing vs. Beijing Mainstreets Investment | Shanghai Shuixing vs. Shanghai Jinfeng Wine | Shanghai Shuixing vs. Zhongrun Resources Investment | Shanghai Shuixing vs. Bingo Software Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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