Correlation Between Shenwu Energy and Zhuhai Comleader
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By analyzing existing cross correlation between Shenwu Energy Saving and Zhuhai Comleader Information, you can compare the effects of market volatilities on Shenwu Energy and Zhuhai Comleader 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 Zhuhai Comleader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Zhuhai Comleader.
Diversification Opportunities for Shenwu Energy and Zhuhai Comleader
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenwu and Zhuhai is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Zhuhai Comleader Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Comleader Inf 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 Zhuhai Comleader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Comleader Inf has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Zhuhai Comleader go up and down completely randomly.
Pair Corralation between Shenwu Energy and Zhuhai Comleader
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to generate 2.45 times more return on investment than Zhuhai Comleader. However, Shenwu Energy is 2.45 times more volatile than Zhuhai Comleader Information. It trades about 0.13 of its potential returns per unit of risk. Zhuhai Comleader Information is currently generating about -0.28 per unit of risk. If you would invest 352.00 in Shenwu Energy Saving on October 24, 2024 and sell it today you would earn a total of 47.00 from holding Shenwu Energy Saving or generate 13.35% 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. Zhuhai Comleader Information
Performance |
| Timeline |
| Shenwu Energy Saving |
| Zhuhai Comleader Inf |
Shenwu Energy and Zhuhai Comleader Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Zhuhai Comleader
The main advantage of trading using opposite Shenwu Energy and Zhuhai Comleader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Zhuhai Comleader 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 Zhuhai Comleader will offset losses from the drop in Zhuhai Comleader's long position.| Shenwu Energy vs. Easyhome New Retail | Shenwu Energy vs. Citic Offshore Helicopter | Shenwu Energy vs. Shenzhen AV Display Co | Shenwu Energy vs. Jinhui Liquor Co |
| Zhuhai Comleader vs. Ningbo Homelink Eco iTech | Zhuhai Comleader vs. Ziel Home Furnishing | Zhuhai Comleader vs. Hunan Mendale Hometextile | Zhuhai Comleader vs. Thinkon Semiconductor Jinzhou |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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