Correlation Between China Shenhua and Shanghai V
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By analyzing existing cross correlation between China Shenhua Energy and Shanghai V Test Semiconductor, you can compare the effects of market volatilities on China Shenhua and Shanghai V 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 China Shenhua with a short position of Shanghai V. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Shenhua and Shanghai V.
Diversification Opportunities for China Shenhua and Shanghai V
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Shanghai is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding China Shenhua Energy and Shanghai V Test Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai V Test and China Shenhua 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 China Shenhua Energy are associated (or correlated) with Shanghai V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai V Test has no effect on the direction of China Shenhua i.e., China Shenhua and Shanghai V go up and down completely randomly.
Pair Corralation between China Shenhua and Shanghai V
Assuming the 90 days trading horizon China Shenhua Energy is expected to under-perform the Shanghai V. But the stock apears to be less risky and, when comparing its historical volatility, China Shenhua Energy is 2.81 times less risky than Shanghai V. The stock trades about -0.29 of its potential returns per unit of risk. The Shanghai V Test Semiconductor is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 6,076 in Shanghai V Test Semiconductor on October 25, 2024 and sell it today you would earn a total of 856.00 from holding Shanghai V Test Semiconductor or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Shenhua Energy vs. Shanghai V Test Semiconductor
Performance |
| Timeline |
| China Shenhua Energy |
| Shanghai V Test |
China Shenhua and Shanghai V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Shenhua and Shanghai V
The main advantage of trading using opposite China Shenhua and Shanghai V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Shenhua position performs unexpectedly, Shanghai V 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 Shanghai V will offset losses from the drop in Shanghai V's long position.| China Shenhua vs. Qingdao Foods Co | China Shenhua vs. Dongguan Tarry Electronics | China Shenhua vs. Beijing YanDong MicroElectronic | China Shenhua vs. Success Electronics |
| Shanghai V vs. Kweichow Moutai Co | Shanghai V vs. NAURA Technology Group | Shanghai V vs. APT Medical | Shanghai V vs. BYD Co Ltd |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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