Correlation Between Shaanxi Energy and Sobute New
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By analyzing existing cross correlation between Shaanxi Energy Investment and Sobute New Materials, you can compare the effects of market volatilities on Shaanxi Energy and Sobute New 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 Sobute New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Energy and Sobute New.
Diversification Opportunities for Shaanxi Energy and Sobute New
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shaanxi and Sobute is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Energy Investment and Sobute New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobute New Materials 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 Sobute New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobute New Materials has no effect on the direction of Shaanxi Energy i.e., Shaanxi Energy and Sobute New go up and down completely randomly.
Pair Corralation between Shaanxi Energy and Sobute New
Assuming the 90 days trading horizon Shaanxi Energy Investment is expected to under-perform the Sobute New. But the stock apears to be less risky and, when comparing its historical volatility, Shaanxi Energy Investment is 1.7 times less risky than Sobute New. The stock trades about -0.36 of its potential returns per unit of risk. The Sobute New Materials is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 770.00 in Sobute New Materials on October 22, 2024 and sell it today you would lose (38.00) from holding Sobute New Materials or give up 4.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Shaanxi Energy Investment vs. Sobute New Materials
Performance |
| Timeline |
| Shaanxi Energy Investment |
| Sobute New Materials |
Shaanxi Energy and Sobute New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Energy and Sobute New
The main advantage of trading using opposite Shaanxi Energy and Sobute New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Energy position performs unexpectedly, Sobute New 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 Sobute New will offset losses from the drop in Sobute New's long position.| Shaanxi Energy vs. Changjiang Jinggong Steel | Shaanxi Energy vs. Peoples Insurance of | Shaanxi Energy vs. Financial Street Holdings | Shaanxi Energy vs. HeNan Splendor Science |
| Sobute New vs. PKU HealthCare Corp | Sobute New vs. Hangzhou Minsheng Healthcare | Sobute New vs. Sanbo Hospital Management | Sobute New vs. Mingchen Health 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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