Correlation Between Jinsanjiang Silicon and Shenwu Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinsanjiang Silicon Material and Shenwu Energy Saving, you can compare the effects of market volatilities on Jinsanjiang Silicon 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 Jinsanjiang Silicon with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Shenwu Energy.
Diversification Opportunities for Jinsanjiang Silicon and Shenwu Energy
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinsanjiang and Shenwu is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material 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 Jinsanjiang Silicon 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 Jinsanjiang Silicon Material 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 Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Shenwu Energy go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Shenwu Energy
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to under-perform the Shenwu Energy. But the stock apears to be less risky and, when comparing its historical volatility, Jinsanjiang Silicon Material is 1.58 times less risky than Shenwu Energy. The stock trades about -0.18 of its potential returns per unit of risk. The Shenwu Energy Saving is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 330.00 in Shenwu Energy Saving on November 2, 2024 and sell it today you would lose (30.00) from holding Shenwu Energy Saving or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Shenwu Energy Saving
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Shenwu Energy Saving |
Jinsanjiang Silicon and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Shenwu Energy
The main advantage of trading using opposite Jinsanjiang Silicon and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon 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.| Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Shandong Gold Mining |
| Shenwu Energy vs. Songz Automobile Air | Shenwu Energy vs. Touchstone International Medical | Shenwu Energy vs. Beijing Kingsoft Office | Shenwu Energy vs. APT Medical |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |