Correlation Between Zhejiang Yayi and Shenwu Energy
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Shenwu Energy Saving, you can compare the effects of market volatilities on Zhejiang Yayi 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 Zhejiang Yayi with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Shenwu Energy.
Diversification Opportunities for Zhejiang Yayi and Shenwu Energy
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Shenwu is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal 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 Zhejiang Yayi 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 Zhejiang Yayi Metal 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 Zhejiang Yayi i.e., Zhejiang Yayi and Shenwu Energy go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Shenwu Energy
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to under-perform the Shenwu Energy. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Yayi Metal is 2.36 times less risky than Shenwu Energy. The stock trades about -0.07 of its potential returns per unit of risk. The Shenwu Energy Saving is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 352.00 in Shenwu Energy Saving on October 22, 2024 and sell it today you would earn a total of 32.00 from holding Shenwu Energy Saving or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Shenwu Energy Saving
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Shenwu Energy Saving |
Zhejiang Yayi and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Shenwu Energy
The main advantage of trading using opposite Zhejiang Yayi and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi 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.| Zhejiang Yayi vs. Nanjing Canatal Data | Zhejiang Yayi vs. Shenzhen Topway Video | Zhejiang Yayi vs. Haima Automobile Group | Zhejiang Yayi vs. Invengo Information Technology |
| Shenwu Energy vs. Hua Xia Bank | Shenwu Energy vs. AVIC Fund Management | Shenwu Energy vs. Bank of Suzhou | Shenwu Energy vs. Jiangsu Financial Leasing |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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