Correlation Between 159681 and Shaanxi Energy
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By analyzing existing cross correlation between 159681 and Shaanxi Energy Investment, you can compare the effects of market volatilities on 159681 and Shaanxi 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 159681 with a short position of Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Shaanxi Energy.
Diversification Opportunities for 159681 and Shaanxi Energy
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Shaanxi is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment and 159681 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 159681 are associated (or correlated) with Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of 159681 i.e., 159681 and Shaanxi Energy go up and down completely randomly.
Pair Corralation between 159681 and Shaanxi Energy
Assuming the 90 days trading horizon 159681 is expected to under-perform the Shaanxi Energy. In addition to that, 159681 is 1.64 times more volatile than Shaanxi Energy Investment. It trades about -0.18 of its total potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.22 per unit of volatility. If you would invest 947.00 in Shaanxi Energy Investment on October 21, 2024 and sell it today you would lose (43.00) from holding Shaanxi Energy Investment or give up 4.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Shaanxi Energy Investment
Performance |
| Timeline |
| 159681 |
| Shaanxi Energy Investment |
159681 and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Shaanxi Energy
The main advantage of trading using opposite 159681 and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Shaanxi 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.The idea behind 159681 and Shaanxi Energy Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Ningbo Tech Bank Co | Shaanxi Energy vs. Zhongzhu Medical Holdings | Shaanxi Energy vs. Panda Dairy Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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