Correlation Between CHINA SOUTHN and ENEOS Holdings
Can any of the company-specific risk be diversified away by investing in both CHINA SOUTHN and ENEOS Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CHINA SOUTHN and ENEOS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA SOUTHN AIR H and ENEOS Holdings, you can compare the effects of market volatilities on CHINA SOUTHN and ENEOS Holdings 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 SOUTHN with a short position of ENEOS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA SOUTHN and ENEOS Holdings.
Diversification Opportunities for CHINA SOUTHN and ENEOS Holdings
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CHINA and ENEOS is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding CHINA SOUTHN AIR H and ENEOS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENEOS Holdings and CHINA SOUTHN 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 SOUTHN AIR H are associated (or correlated) with ENEOS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENEOS Holdings has no effect on the direction of CHINA SOUTHN i.e., CHINA SOUTHN and ENEOS Holdings go up and down completely randomly.
Pair Corralation between CHINA SOUTHN and ENEOS Holdings
Assuming the 90 days trading horizon CHINA SOUTHN AIR H is expected to under-perform the ENEOS Holdings. In addition to that, CHINA SOUTHN is 1.12 times more volatile than ENEOS Holdings. It trades about -0.17 of its total potential returns per unit of risk. ENEOS Holdings is currently generating about 0.01 per unit of volatility. If you would invest 492.00 in ENEOS Holdings on October 11, 2024 and sell it today you would earn a total of 0.00 from holding ENEOS Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA SOUTHN AIR H vs. ENEOS Holdings
Performance |
| Timeline |
| CHINA SOUTHN AIR |
| ENEOS Holdings |
CHINA SOUTHN and ENEOS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA SOUTHN and ENEOS Holdings
The main advantage of trading using opposite CHINA SOUTHN and ENEOS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA SOUTHN position performs unexpectedly, ENEOS Holdings 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 ENEOS Holdings will offset losses from the drop in ENEOS Holdings' long position.| CHINA SOUTHN vs. SCOTT TECHNOLOGY | CHINA SOUTHN vs. Firan Technology Group | CHINA SOUTHN vs. Micron Technology | CHINA SOUTHN vs. PACIFIC ONLINE |
| ENEOS Holdings vs. FANDIFI TECHNOLOGY P | ENEOS Holdings vs. SYSTEMAIR AB | ENEOS Holdings vs. CHINA SOUTHN AIR H | ENEOS Holdings vs. Easy Software AG |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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