Correlation Between Shenwu Energy and Dongjiang Environmental
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By analyzing existing cross correlation between Shenwu Energy Saving and Dongjiang Environmental Co, you can compare the effects of market volatilities on Shenwu Energy and Dongjiang Environmental 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 Dongjiang Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Dongjiang Environmental.
Diversification Opportunities for Shenwu Energy and Dongjiang Environmental
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenwu and Dongjiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Dongjiang Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongjiang Environmental 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 Dongjiang Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongjiang Environmental has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Dongjiang Environmental go up and down completely randomly.
Pair Corralation between Shenwu Energy and Dongjiang Environmental
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to generate 1.28 times more return on investment than Dongjiang Environmental. However, Shenwu Energy is 1.28 times more volatile than Dongjiang Environmental Co. It trades about 0.18 of its potential returns per unit of risk. Dongjiang Environmental Co is currently generating about 0.06 per unit of risk. If you would invest 266.00 in Shenwu Energy Saving on August 31, 2025 and sell it today you would earn a total of 81.00 from holding Shenwu Energy Saving or generate 30.45% 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. Dongjiang Environmental Co
Performance |
| Timeline |
| Shenwu Energy Saving |
| Dongjiang Environmental |
Shenwu Energy and Dongjiang Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Dongjiang Environmental
The main advantage of trading using opposite Shenwu Energy and Dongjiang Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Dongjiang Environmental 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 Dongjiang Environmental will offset losses from the drop in Dongjiang Environmental's long position.| Shenwu Energy vs. Kuangda Technology Group | Shenwu Energy vs. Shenzhen Kexin Communication | Shenwu Energy vs. Kingsignal Technology Co | Shenwu Energy vs. Sinomach Automobile Co |
| Dongjiang Environmental vs. CareRay Digital Medical | Dongjiang Environmental vs. Chison Medical Technologies | Dongjiang Environmental vs. Jiangsu Jinling Sports | Dongjiang Environmental vs. BMC Medical Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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