Correlation Between Shenzhen and Shenwu Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen SC New and Shenwu Energy Saving, you can compare the effects of market volatilities on Shenzhen 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 with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Shenwu Energy.
Diversification Opportunities for Shenzhen and Shenwu Energy
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Shenwu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SC New 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 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 SC New 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 i.e., Shenzhen and Shenwu Energy go up and down completely randomly.
Pair Corralation between Shenzhen and Shenwu Energy
Assuming the 90 days trading horizon Shenzhen SC New is expected to under-perform the Shenwu Energy. In addition to that, Shenzhen is 1.03 times more volatile than Shenwu Energy Saving. It trades about -0.23 of its total potential returns per unit of risk. Shenwu Energy Saving is currently generating about -0.01 per unit of volatility. If you would invest 427.00 in Shenwu Energy Saving on September 12, 2024 and sell it today you would lose (5.00) from holding Shenwu Energy Saving or give up 1.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SC New vs. Shenwu Energy Saving
Performance |
| Timeline |
| Shenzhen SC New |
| Shenwu Energy Saving |
Shenzhen and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Shenwu Energy
The main advantage of trading using opposite Shenzhen and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen 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 vs. Yindu Kitchen Equipment | Shenzhen vs. Lander Sports Development | Shenzhen vs. Shenzhen Silver Basis | Shenzhen vs. Tianjin Silvery Dragon |
| Shenwu Energy vs. Agricultural Bank of | Shenwu Energy vs. Industrial and Commercial | Shenwu Energy vs. Bank of China | Shenwu Energy vs. PetroChina Co Ltd |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |