Correlation Between Northern United and Shenwu Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Northern United Publishing and Shenwu Energy Saving, you can compare the effects of market volatilities on Northern United 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 Northern United with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Shenwu Energy.
Diversification Opportunities for Northern United and Shenwu Energy
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northern and Shenwu is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing 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 Northern United 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 Northern United Publishing 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 Northern United i.e., Northern United and Shenwu Energy go up and down completely randomly.
Pair Corralation between Northern United and Shenwu Energy
Assuming the 90 days trading horizon Northern United Publishing is expected to under-perform the Shenwu Energy. But the stock apears to be less risky and, when comparing its historical volatility, Northern United Publishing is 1.39 times less risky than Shenwu Energy. The stock trades about -0.25 of its potential returns per unit of risk. The Shenwu Energy Saving is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 404.00 in Shenwu Energy Saving on October 10, 2024 and sell it today you would lose (50.00) from holding Shenwu Energy Saving or give up 12.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Shenwu Energy Saving
Performance |
| Timeline |
| Northern United Publ |
| Shenwu Energy Saving |
Northern United and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Shenwu Energy
The main advantage of trading using opposite Northern United and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United 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.| Northern United vs. Peoples Insurance of | Northern United vs. China Everbright Bank | Northern United vs. Qilu Bank Co | Northern United vs. Heilongjiang Transport Development |
| Shenwu Energy vs. Maccura Biotechnology Co | Shenwu Energy vs. Mingchen Health Co | Shenwu Energy vs. Yunnan Jianzhijia Health Chain | Shenwu Energy vs. Meinian Onehealth Healthcare |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |