Correlation Between Zhongshan Public and State Grid
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By analyzing existing cross correlation between Zhongshan Public Utilities and State Grid InformationCommunication, you can compare the effects of market volatilities on Zhongshan Public and State Grid 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 Zhongshan Public with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and State Grid.
Diversification Opportunities for Zhongshan Public and State Grid
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhongshan and State is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and State Grid go up and down completely randomly.
Pair Corralation between Zhongshan Public and State Grid
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.74 times more return on investment than State Grid. However, Zhongshan Public Utilities is 1.36 times less risky than State Grid. It trades about 0.15 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about -0.12 per unit of risk. If you would invest 851.00 in Zhongshan Public Utilities on November 3, 2024 and sell it today you would earn a total of 28.00 from holding Zhongshan Public Utilities or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. State Grid InformationCommunic
Performance |
| Timeline |
| Zhongshan Public Uti |
| State Grid Informati |
Zhongshan Public and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and State Grid
The main advantage of trading using opposite Zhongshan Public and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Zhongshan Public vs. Xiangyu Medical Co | Zhongshan Public vs. Zhonghong Pulin Medical | Zhongshan Public vs. Qingdao Foods Co | Zhongshan Public vs. Guilin Seamild Foods |
| State Grid vs. Qtone Education Group | State Grid vs. Jinling Hotel Corp | State Grid vs. Zhejiang Publishing Media | State Grid vs. Heilongjiang Publishing Media |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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