Correlation Between Henan Shuanghui and Shaanxi Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henan Shuanghui Investment and Shaanxi Energy Investment, you can compare the effects of market volatilities on Henan Shuanghui and Shaanxi 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 Henan Shuanghui with a short position of Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Shaanxi Energy.
Diversification Opportunities for Henan Shuanghui and Shaanxi Energy
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henan and Shaanxi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment and Henan Shuanghui 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 Henan Shuanghui Investment are associated (or correlated) with Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Shaanxi Energy
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.9 times more return on investment than Shaanxi Energy. However, Henan Shuanghui Investment is 1.11 times less risky than Shaanxi Energy. It trades about 0.11 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about 0.07 per unit of risk. If you would invest 2,355 in Henan Shuanghui Investment on September 20, 2024 and sell it today you would earn a total of 265.00 from holding Henan Shuanghui Investment or generate 11.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Henan Shuanghui Investment vs. Shaanxi Energy Investment
Performance |
Timeline |
Henan Shuanghui Inve |
Shaanxi Energy Investment |
Henan Shuanghui and Shaanxi Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Henan Shuanghui and Shaanxi Energy
The main advantage of trading using opposite Henan Shuanghui and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Shaanxi 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.Henan Shuanghui vs. Nanjing Putian Telecommunications | ||
Henan Shuanghui vs. Tianjin Realty Development | ||
Henan Shuanghui vs. Kangyue Technology Co | ||
Henan Shuanghui vs. Shenzhen Hifuture Electric |
Shaanxi Energy vs. Zhejiang Kingland Pipeline | ||
Shaanxi Energy vs. HOB Biotech Group | ||
Shaanxi Energy vs. Ming Yang Smart | ||
Shaanxi Energy vs. 159681 |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |