Correlation Between Shenzhen MYS and Shenwu Energy
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Shenwu Energy Saving, you can compare the effects of market volatilities on Shenzhen MYS 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 Shenzhen MYS with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Shenwu Energy.
Diversification Opportunities for Shenzhen MYS and Shenwu Energy
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Shenwu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental 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 Shenzhen MYS 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 Shenzhen MYS Environmental 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 Shenzhen MYS i.e., Shenzhen MYS and Shenwu Energy go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Shenwu Energy
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.67 times more return on investment than Shenwu Energy. However, Shenzhen MYS Environmental is 1.49 times less risky than Shenwu Energy. It trades about 0.05 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about 0.0 per unit of risk. If you would invest 282.00 in Shenzhen MYS Environmental on September 14, 2024 and sell it today you would earn a total of 132.00 from holding Shenzhen MYS Environmental or generate 46.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Shenwu Energy Saving
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Shenwu Energy Saving |
Shenzhen MYS and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Shenwu Energy
The main advantage of trading using opposite Shenzhen MYS and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS 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.| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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