Correlation Between HeNan Splendor and Shenwu Energy
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By analyzing existing cross correlation between HeNan Splendor Science and Shenwu Energy Saving, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Shenwu Energy.
Diversification Opportunities for HeNan Splendor and Shenwu Energy
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between HeNan and Shenwu is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science 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 HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and Shenwu Energy go up and down completely randomly.
Pair Corralation between HeNan Splendor and Shenwu Energy
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 0.5 times more return on investment than Shenwu Energy. However, HeNan Splendor Science is 2.02 times less risky than Shenwu Energy. It trades about 0.17 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about -0.04 per unit of risk. If you would invest 947.00 in HeNan Splendor Science on November 3, 2024 and sell it today you would earn a total of 101.00 from holding HeNan Splendor Science or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Shenwu Energy Saving
Performance |
| Timeline |
| HeNan Splendor Science |
| Shenwu Energy Saving |
HeNan Splendor and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Shenwu Energy
The main advantage of trading using opposite HeNan Splendor and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Suzhou Oriental Semiconductor | HeNan Splendor vs. Emdoor Information Co | HeNan Splendor vs. Invengo Information Technology | HeNan Splendor vs. Bonree Data Technology |
| Shenwu Energy vs. Tjk Machinery Tianjin | Shenwu Energy vs. Sinomach General Machinery | Shenwu Energy vs. Fujian Boss Software | Shenwu Energy vs. Masterwork Machinery |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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