Correlation Between Yunnan Jianzhijia and Shenwu Energy
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Shenwu Energy Saving, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Shenwu Energy.
Diversification Opportunities for Yunnan Jianzhijia and Shenwu Energy
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yunnan and Shenwu is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Shenwu Energy go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Shenwu Energy
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Shenwu Energy. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Jianzhijia Health Chain is 1.2 times less risky than Shenwu Energy. The stock trades about -0.05 of its potential returns per unit of risk. The Shenwu Energy Saving is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 465.00 in Shenwu Energy Saving on October 11, 2024 and sell it today you would lose (111.00) from holding Shenwu Energy Saving or give up 23.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Shenwu Energy Saving
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Shenwu Energy Saving |
Yunnan Jianzhijia and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Shenwu Energy
The main advantage of trading using opposite Yunnan Jianzhijia and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.| Yunnan Jianzhijia vs. Anji Foodstuff Co | Yunnan Jianzhijia vs. Advanced Technology Materials | Yunnan Jianzhijia vs. Malion New Materials | Yunnan Jianzhijia vs. Xinke Material |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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