Correlation Between Celxpert Energy and Shinkong Synthetic
Can any of the company-specific risk be diversified away by investing in both Celxpert Energy and Shinkong Synthetic at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Celxpert Energy and Shinkong Synthetic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celxpert Energy and Shinkong Synthetic Fiber, you can compare the effects of market volatilities on Celxpert Energy and Shinkong Synthetic 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 Celxpert Energy with a short position of Shinkong Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celxpert Energy and Shinkong Synthetic.
Diversification Opportunities for Celxpert Energy and Shinkong Synthetic
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Celxpert and Shinkong is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Celxpert Energy and Shinkong Synthetic Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinkong Synthetic Fiber and Celxpert Energy 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 Celxpert Energy are associated (or correlated) with Shinkong Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinkong Synthetic Fiber has no effect on the direction of Celxpert Energy i.e., Celxpert Energy and Shinkong Synthetic go up and down completely randomly.
Pair Corralation between Celxpert Energy and Shinkong Synthetic
Assuming the 90 days trading horizon Celxpert Energy is expected to generate 4.02 times more return on investment than Shinkong Synthetic. However, Celxpert Energy is 4.02 times more volatile than Shinkong Synthetic Fiber. It trades about 0.25 of its potential returns per unit of risk. Shinkong Synthetic Fiber is currently generating about 0.03 per unit of risk. If you would invest 2,390 in Celxpert Energy on September 5, 2024 and sell it today you would earn a total of 1,910 from holding Celxpert Energy or generate 79.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Celxpert Energy vs. Shinkong Synthetic Fiber
Performance |
| Timeline |
| Celxpert Energy |
| Shinkong Synthetic Fiber |
Celxpert Energy and Shinkong Synthetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celxpert Energy and Shinkong Synthetic
The main advantage of trading using opposite Celxpert Energy and Shinkong Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celxpert Energy position performs unexpectedly, Shinkong Synthetic 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 Shinkong Synthetic will offset losses from the drop in Shinkong Synthetic's long position.| Celxpert Energy vs. Shinkong Synthetic Fiber | Celxpert Energy vs. Oceanic Beverages Co | Celxpert Energy vs. Wah Hong Industrial | Celxpert Energy vs. Hsinli Chemical Industrial |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |