Correlation Between Shaanxi Energy and Shaanxi Beiyuan
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By analyzing existing cross correlation between Shaanxi Energy Investment and Shaanxi Beiyuan Chemical, you can compare the effects of market volatilities on Shaanxi Energy and Shaanxi Beiyuan 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 Shaanxi Beiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Energy and Shaanxi Beiyuan.
Diversification Opportunities for Shaanxi Energy and Shaanxi Beiyuan
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shaanxi and Shaanxi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Energy Investment and Shaanxi Beiyuan Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Beiyuan Chemical 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 Shaanxi Beiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Beiyuan Chemical has no effect on the direction of Shaanxi Energy i.e., Shaanxi Energy and Shaanxi Beiyuan go up and down completely randomly.
Pair Corralation between Shaanxi Energy and Shaanxi Beiyuan
Assuming the 90 days trading horizon Shaanxi Energy Investment is expected to generate 1.19 times more return on investment than Shaanxi Beiyuan. However, Shaanxi Energy is 1.19 times more volatile than Shaanxi Beiyuan Chemical. It trades about 0.02 of its potential returns per unit of risk. Shaanxi Beiyuan Chemical is currently generating about -0.01 per unit of risk. If you would invest 937.00 in Shaanxi Energy Investment on September 12, 2024 and sell it today you would earn a total of 38.00 from holding Shaanxi Energy Investment or generate 4.06% 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. Shaanxi Beiyuan Chemical
Performance |
| Timeline |
| Shaanxi Energy Investment |
| Shaanxi Beiyuan Chemical |
Shaanxi Energy and Shaanxi Beiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Energy and Shaanxi Beiyuan
The main advantage of trading using opposite Shaanxi Energy and Shaanxi Beiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Energy position performs unexpectedly, Shaanxi Beiyuan 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 Shaanxi Beiyuan will offset losses from the drop in Shaanxi Beiyuan's long position.| Shaanxi Energy vs. Gansu Jiu Steel | Shaanxi Energy vs. Shandong Mining Machinery | Shaanxi Energy vs. Aba Chemicals Corp | Shaanxi Energy vs. BlueFocus Communication Group |
| Shaanxi Beiyuan vs. HUAQIN TECHNOLOGY LTD | Shaanxi Beiyuan vs. Jinhe Biotechnology Co | Shaanxi Beiyuan vs. Shaanxi Energy Investment | Shaanxi Beiyuan vs. Zhejiang Construction Investment |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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