Correlation Between Zhejiang Publishing and Shenwu Energy
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By analyzing existing cross correlation between Zhejiang Publishing Media and Shenwu Energy Saving, you can compare the effects of market volatilities on Zhejiang Publishing 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 Publishing with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Shenwu Energy.
Diversification Opportunities for Zhejiang Publishing and Shenwu Energy
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhejiang and Shenwu is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media 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 Publishing 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 Publishing Media 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 Publishing i.e., Zhejiang Publishing and Shenwu Energy go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Shenwu Energy
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to under-perform the Shenwu Energy. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Publishing Media is 1.56 times less risky than Shenwu Energy. The stock trades about 0.0 of its potential returns per unit of risk. The Shenwu Energy Saving is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Shenwu Energy Saving on October 25, 2024 and sell it today you would earn a total of 157.00 from holding Shenwu Energy Saving or generate 72.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. Shenwu Energy Saving
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Shenwu Energy Saving |
Zhejiang Publishing and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Shenwu Energy
The main advantage of trading using opposite Zhejiang Publishing and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing 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 Publishing vs. Industrial and Commercial | Zhejiang Publishing vs. Agricultural Bank of | Zhejiang Publishing vs. China Construction Bank | Zhejiang Publishing vs. Bank of China |
| Shenwu Energy vs. Kweichow Moutai Co | Shenwu Energy vs. Contemporary Amperex Technology | Shenwu Energy vs. Beijing Roborock Technology | Shenwu Energy 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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