Correlation Between Shenyang Blue and Shaanxi Meineng
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By analyzing existing cross correlation between Shenyang Blue Silver and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Shenyang Blue and Shaanxi Meineng 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 Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Shaanxi Meineng.
Diversification Opportunities for Shenyang Blue and Shaanxi Meineng
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenyang and Shaanxi is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Shenyang Blue i.e., Shenyang Blue and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Shenyang Blue and Shaanxi Meineng
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to under-perform the Shaanxi Meineng. In addition to that, Shenyang Blue is 1.2 times more volatile than Shaanxi Meineng Clean. It trades about -0.43 of its total potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about -0.25 per unit of volatility. If you would invest 1,381 in Shaanxi Meineng Clean on October 12, 2024 and sell it today you would lose (164.00) from holding Shaanxi Meineng Clean or give up 11.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Shenyang Blue Silver |
| Shaanxi Meineng Clean |
Shenyang Blue and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Shaanxi Meineng
The main advantage of trading using opposite Shenyang Blue and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue position performs unexpectedly, Shaanxi Meineng 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 Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Shenyang Blue vs. Biwin Storage Technology | Shenyang Blue vs. PetroChina Co Ltd | Shenyang Blue vs. Industrial and Commercial | Shenyang Blue vs. China Construction Bank |
| Shaanxi Meineng vs. Tieling Newcity Investment | Shaanxi Meineng vs. Shenzhen Centralcon Investment | Shaanxi Meineng vs. Fujian Oriental Silver | Shaanxi Meineng vs. Zhongrun Resources Investment |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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