Correlation Between Gem Year and Shenwu Energy
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By analyzing existing cross correlation between Gem Year Industrial Co and Shenwu Energy Saving, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Shenwu Energy.
Diversification Opportunities for Gem Year and Shenwu Energy
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gem and Shenwu is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co 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 Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Shenwu Energy go up and down completely randomly.
Pair Corralation between Gem Year and Shenwu Energy
Assuming the 90 days trading horizon Gem Year is expected to generate 1.4 times less return on investment than Shenwu Energy. But when comparing it to its historical volatility, Gem Year Industrial Co is 1.53 times less risky than Shenwu Energy. It trades about 0.14 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 219.00 in Shenwu Energy Saving on October 18, 2024 and sell it today you would earn a total of 172.00 from holding Shenwu Energy Saving or generate 78.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Shenwu Energy Saving
Performance |
| Timeline |
| Gem Year Industrial |
| Shenwu Energy Saving |
Gem Year and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Shenwu Energy
The main advantage of trading using opposite Gem Year and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Hubei Geoway Investment | Gem Year vs. Vanfund Urban Investment | Gem Year vs. Kunwu Jiuding Investment | Gem Year vs. Tinavi Medical Technologies |
| Shenwu Energy vs. Gem Year Industrial Co | Shenwu Energy vs. Lander Sports Development | Shenwu Energy vs. Guangdong Jingyi Metal | Shenwu Energy vs. Shenzhen AV Display Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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