Correlation Between Heilongjiang Publishing and Shenwu Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Heilongjiang Publishing Media and Shenwu Energy Saving, you can compare the effects of market volatilities on Heilongjiang 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 Heilongjiang Publishing with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and Shenwu Energy.
Diversification Opportunities for Heilongjiang Publishing and Shenwu Energy
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Heilongjiang and Shenwu is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang 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 Heilongjiang 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 Heilongjiang 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 Heilongjiang Publishing i.e., Heilongjiang Publishing and Shenwu Energy go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and Shenwu Energy
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to under-perform the Shenwu Energy. But the stock apears to be less risky and, when comparing its historical volatility, Heilongjiang Publishing Media is 1.46 times less risky than Shenwu Energy. The stock trades about -0.33 of its potential returns per unit of risk. The Shenwu Energy Saving is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 422.00 in Shenwu Energy Saving on October 12, 2024 and sell it today you would lose (33.00) from holding Shenwu Energy Saving or give up 7.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Publishing Media vs. Shenwu Energy Saving
Performance |
| Timeline |
| Heilongjiang Publishing |
| Shenwu Energy Saving |
Heilongjiang Publishing and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and Shenwu Energy
The main advantage of trading using opposite Heilongjiang Publishing and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang 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.The idea behind Heilongjiang Publishing Media and Shenwu Energy Saving pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Shenwu Energy vs. Peoples Insurance of | Shenwu Energy vs. Eastern Air Logistics | Shenwu Energy vs. Heilongjiang Publishing Media | Shenwu Energy vs. Offcn Education Technology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |