Correlation Between Hengli Petrochemical and Shaanxi Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengli Petrochemical Co and Shaanxi Energy Investment, you can compare the effects of market volatilities on Hengli Petrochemical and Shaanxi 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 Hengli Petrochemical with a short position of Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Petrochemical and Shaanxi Energy.
Diversification Opportunities for Hengli Petrochemical and Shaanxi Energy
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengli and Shaanxi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Petrochemical Co and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment and Hengli Petrochemical 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 Hengli Petrochemical Co are associated (or correlated) with Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Hengli Petrochemical i.e., Hengli Petrochemical and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Hengli Petrochemical and Shaanxi Energy
Assuming the 90 days trading horizon Hengli Petrochemical Co is expected to generate 1.39 times more return on investment than Shaanxi Energy. However, Hengli Petrochemical is 1.39 times more volatile than Shaanxi Energy Investment. It trades about 0.16 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about 0.03 per unit of risk. If you would invest 1,382 in Hengli Petrochemical Co on September 5, 2024 and sell it today you would earn a total of 81.00 from holding Hengli Petrochemical Co or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hengli Petrochemical Co vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Hengli Petrochemical |
| Shaanxi Energy Investment |
Hengli Petrochemical and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Petrochemical and Shaanxi Energy
The main advantage of trading using opposite Hengli Petrochemical and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Petrochemical position performs unexpectedly, Shaanxi 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Hengli Petrochemical vs. Tongling Nonferrous Metals | Hengli Petrochemical vs. Western Mining Co | Hengli Petrochemical vs. Xinjiang Baodi Mining | Hengli Petrochemical vs. Jiangxi Naipu Mining |
| Shaanxi Energy vs. Hengli Petrochemical Co | Shaanxi Energy vs. Chenzhou Jingui Silver | Shaanxi Energy vs. Chengtun Mining Group | Shaanxi 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |