Correlation Between Shenyang Blue and Shaanxi Energy
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By analyzing existing cross correlation between Shenyang Blue Silver and Shaanxi Energy Investment, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Shaanxi Energy.
Diversification Opportunities for Shenyang Blue and Shaanxi Energy
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Shaanxi is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver 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 Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Shenyang Blue and Shaanxi Energy
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to under-perform the Shaanxi Energy. In addition to that, Shenyang Blue is 3.33 times more volatile than Shaanxi Energy Investment. It trades about -0.21 of its total potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.05 per unit of volatility. If you would invest 993.00 in Shaanxi Energy Investment on September 13, 2024 and sell it today you would lose (14.00) from holding Shaanxi Energy Investment or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Shenyang Blue Silver |
| Shaanxi Energy Investment |
Shenyang Blue and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Shaanxi Energy
The main advantage of trading using opposite Shenyang Blue and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.| Shenyang Blue vs. Eastroc Beverage Group | Shenyang Blue vs. Guangdong Wens Foodstuff | Shenyang Blue vs. Tibet Huayu Mining | Shenyang Blue vs. Shantou Wanshun Package |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. HOB Biotech Group | Shaanxi Energy vs. Ming Yang Smart | Shaanxi Energy vs. 159681 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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