Correlation Between Shaanxi Energy and Jiangsu Yueda
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By analyzing existing cross correlation between Shaanxi Energy Investment and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Shaanxi Energy and Jiangsu Yueda 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 Shaanxi Energy with a short position of Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Energy and Jiangsu Yueda.
Diversification Opportunities for Shaanxi Energy and Jiangsu Yueda
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shaanxi and Jiangsu is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Energy Investment and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment and Shaanxi 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 Shaanxi Energy Investment are associated (or correlated) with Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Shaanxi Energy i.e., Shaanxi Energy and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Shaanxi Energy and Jiangsu Yueda
Assuming the 90 days trading horizon Shaanxi Energy Investment is expected to under-perform the Jiangsu Yueda. But the stock apears to be less risky and, when comparing its historical volatility, Shaanxi Energy Investment is 1.6 times less risky than Jiangsu Yueda. The stock trades about -0.14 of its potential returns per unit of risk. The Jiangsu Yueda Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 461.00 in Jiangsu Yueda Investment on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Jiangsu Yueda Investment or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Energy Investment vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Shaanxi Energy Investment |
| Jiangsu Yueda Investment |
Shaanxi Energy and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Energy and Jiangsu Yueda
The main advantage of trading using opposite Shaanxi Energy and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Energy position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Xiangyang Automobile Bearing | Shaanxi Energy vs. Suzhou Novoprotein Scientific | Shaanxi Energy vs. COL Digital Publishing |
| Jiangsu Yueda vs. Ming Yang Smart | Jiangsu Yueda vs. 159681 | Jiangsu Yueda vs. 159005 | Jiangsu Yueda vs. Loctek Ergonomic 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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