Correlation Between Shaanxi Meineng and 5I5j Holding
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By analyzing existing cross correlation between Shaanxi Meineng Clean and 5I5j Holding Group, you can compare the effects of market volatilities on Shaanxi Meineng and 5I5j Holding 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 Meineng with a short position of 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and 5I5j Holding.
Diversification Opportunities for Shaanxi Meineng and 5I5j Holding
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and 5I5j is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group and Shaanxi Meineng 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 Meineng Clean are associated (or correlated) with 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and 5I5j Holding go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and 5I5j Holding
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to under-perform the 5I5j Holding. But the stock apears to be less risky and, when comparing its historical volatility, Shaanxi Meineng Clean is 1.29 times less risky than 5I5j Holding. The stock trades about -0.02 of its potential returns per unit of risk. The 5I5j Holding Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 266.00 in 5I5j Holding Group on September 26, 2024 and sell it today you would earn a total of 62.00 from holding 5I5j Holding Group or generate 23.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. 5I5j Holding Group
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| 5I5j Holding Group |
Shaanxi Meineng and 5I5j Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and 5I5j Holding
The main advantage of trading using opposite Shaanxi Meineng and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.| Shaanxi Meineng vs. Eastroc Beverage Group | Shaanxi Meineng vs. Shuhua Sports Co | Shaanxi Meineng vs. Duzhe Publishing Media | Shaanxi Meineng vs. Mango Excellent Media |
| 5I5j Holding vs. Aofu Environmental Technology | 5I5j Holding vs. Penyao Environmental Protection | 5I5j Holding vs. Eit Environmental Development | 5I5j Holding vs. BTG Hotels Group |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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