Correlation Between Shenwu Energy and Invengo Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenwu Energy Saving and Invengo Information Technology, you can compare the effects of market volatilities on Shenwu Energy and Invengo Information 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 Shenwu Energy with a short position of Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Invengo Information.
Diversification Opportunities for Shenwu Energy and Invengo Information
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenwu and Invengo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information and Shenwu Energy 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 Shenwu Energy Saving are associated (or correlated) with Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Invengo Information go up and down completely randomly.
Pair Corralation between Shenwu Energy and Invengo Information
Assuming the 90 days trading horizon Shenwu Energy is expected to generate 1.07 times less return on investment than Invengo Information. But when comparing it to its historical volatility, Shenwu Energy Saving is 1.17 times less risky than Invengo Information. It trades about 0.24 of its potential returns per unit of risk. Invengo Information Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 387.00 in Invengo Information Technology on September 13, 2024 and sell it today you would earn a total of 266.00 from holding Invengo Information Technology or generate 68.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenwu Energy Saving vs. Invengo Information Technology
Performance |
Timeline |
Shenwu Energy Saving |
Invengo Information |
Shenwu Energy and Invengo Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenwu Energy and Invengo Information
The main advantage of trading using opposite Shenwu Energy and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.Shenwu Energy vs. Lutian Machinery Co | Shenwu Energy vs. China Longyuan Power | Shenwu Energy vs. PetroChina Co Ltd | Shenwu Energy vs. Bank of China |
Invengo Information vs. Industrial and Commercial | Invengo Information vs. Agricultural Bank of | Invengo Information vs. China Construction Bank | Invengo Information vs. Bank of China |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |