Correlation Between Sungrow Power and Shaanxi Beiyuan
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By analyzing existing cross correlation between Sungrow Power Supply and Shaanxi Beiyuan Chemical, you can compare the effects of market volatilities on Sungrow Power and Shaanxi Beiyuan 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 Sungrow Power with a short position of Shaanxi Beiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungrow Power and Shaanxi Beiyuan.
Diversification Opportunities for Sungrow Power and Shaanxi Beiyuan
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sungrow and Shaanxi is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Sungrow Power Supply and Shaanxi Beiyuan Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Beiyuan Chemical and Sungrow Power 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 Sungrow Power Supply are associated (or correlated) with Shaanxi Beiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Beiyuan Chemical has no effect on the direction of Sungrow Power i.e., Sungrow Power and Shaanxi Beiyuan go up and down completely randomly.
Pair Corralation between Sungrow Power and Shaanxi Beiyuan
Assuming the 90 days trading horizon Sungrow Power Supply is expected to under-perform the Shaanxi Beiyuan. In addition to that, Sungrow Power is 2.04 times more volatile than Shaanxi Beiyuan Chemical. It trades about -0.11 of its total potential returns per unit of risk. Shaanxi Beiyuan Chemical is currently generating about 0.21 per unit of volatility. If you would invest 426.00 in Shaanxi Beiyuan Chemical on September 5, 2024 and sell it today you would earn a total of 26.00 from holding Shaanxi Beiyuan Chemical or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungrow Power Supply vs. Shaanxi Beiyuan Chemical
Performance |
| Timeline |
| Sungrow Power Supply |
| Shaanxi Beiyuan Chemical |
Sungrow Power and Shaanxi Beiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungrow Power and Shaanxi Beiyuan
The main advantage of trading using opposite Sungrow Power and Shaanxi Beiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungrow Power position performs unexpectedly, Shaanxi Beiyuan 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 Beiyuan will offset losses from the drop in Shaanxi Beiyuan's long position.| Sungrow Power vs. Guangzhou Jointas Chemical | Sungrow Power vs. Xilinmen Furniture Co | Sungrow Power vs. Jilin Chemical Fibre | Sungrow Power vs. HeBei Jinniu Chemical |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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