Correlation Between Jiangxi Sunshine and Shenwu Energy
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By analyzing existing cross correlation between Jiangxi Sunshine Dairy and Shenwu Energy Saving, you can compare the effects of market volatilities on Jiangxi Sunshine and Shenwu Energy 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 Jiangxi Sunshine with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Sunshine and Shenwu Energy.
Diversification Opportunities for Jiangxi Sunshine and Shenwu Energy
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Shenwu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Sunshine Dairy and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving and Jiangxi Sunshine 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 Jiangxi Sunshine Dairy are associated (or correlated) with Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Jiangxi Sunshine i.e., Jiangxi Sunshine and Shenwu Energy go up and down completely randomly.
Pair Corralation between Jiangxi Sunshine and Shenwu Energy
Assuming the 90 days trading horizon Jiangxi Sunshine is expected to generate 2.53 times less return on investment than Shenwu Energy. But when comparing it to its historical volatility, Jiangxi Sunshine Dairy is 1.55 times less risky than Shenwu Energy. It trades about 0.02 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 402.00 in Shenwu Energy Saving on September 14, 2024 and sell it today you would earn a total of 20.00 from holding Shenwu Energy Saving or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Sunshine Dairy vs. Shenwu Energy Saving
Performance |
| Timeline |
| Jiangxi Sunshine Dairy |
| Shenwu Energy Saving |
Jiangxi Sunshine and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Sunshine and Shenwu Energy
The main advantage of trading using opposite Jiangxi Sunshine and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Sunshine position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Jiangxi Sunshine vs. Sinosteel Engineering and | Jiangxi Sunshine vs. Shenwu Energy Saving | Jiangxi Sunshine vs. Ping An Insurance | Jiangxi Sunshine vs. Easyhome New Retail |
| Shenwu Energy vs. Lutian Machinery Co | Shenwu Energy vs. China Longyuan Power | Shenwu Energy vs. PetroChina Co Ltd | Shenwu Energy vs. Bank of China |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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