Correlation Between Shaanxi Energy and Heilongjiang Publishing
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By analyzing existing cross correlation between Shaanxi Energy Investment and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Shaanxi Energy and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Energy and Heilongjiang Publishing.
Diversification Opportunities for Shaanxi Energy and Heilongjiang Publishing
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shaanxi and Heilongjiang is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Energy Investment and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Shaanxi Energy i.e., Shaanxi Energy and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Shaanxi Energy and Heilongjiang Publishing
Assuming the 90 days trading horizon Shaanxi Energy Investment is expected to generate 0.51 times more return on investment than Heilongjiang Publishing. However, Shaanxi Energy Investment is 1.98 times less risky than Heilongjiang Publishing. It trades about 0.04 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about -0.02 per unit of risk. If you would invest 829.00 in Shaanxi Energy Investment on August 25, 2024 and sell it today you would earn a total of 118.00 from holding Shaanxi Energy Investment or generate 14.23% 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. Heilongjiang Publishing Media
Performance |
| Timeline |
| Shaanxi Energy Investment |
| Heilongjiang Publishing |
Shaanxi Energy and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Energy and Heilongjiang Publishing
The main advantage of trading using opposite Shaanxi Energy and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Energy position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing'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 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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