Correlation Between HanS Laser and State Grid

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both HanS Laser and State Grid 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 HanS Laser and State Grid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HanS Laser Tech and State Grid InformationCommunication, you can compare the effects of market volatilities on HanS Laser 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 HanS Laser with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and State Grid.

Diversification Opportunities for HanS Laser and State Grid

0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between HanS and State is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech 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 HanS Laser 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 HanS Laser Tech 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 HanS Laser i.e., HanS Laser and State Grid go up and down completely randomly.

Pair Corralation between HanS Laser and State Grid

Assuming the 90 days trading horizon HanS Laser Tech is expected to generate 0.97 times more return on investment than State Grid. However, HanS Laser Tech is 1.03 times less risky than State Grid. It trades about 0.09 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.04 per unit of risk. If you would invest  2,030  in HanS Laser Tech on November 3, 2024 and sell it today you would earn a total of  533.00  from holding HanS Laser Tech or generate 26.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

HanS Laser Tech  vs.  State Grid InformationCommunic

 Performance 
       Timeline  
HanS Laser Tech 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in HanS Laser Tech are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, HanS Laser is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
State Grid Informati 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days State Grid InformationCommunication has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

HanS Laser and State Grid Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with HanS Laser and State Grid

The main advantage of trading using opposite HanS Laser and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser 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.
HanS Laser vs. CareRay Digital Medical
HanS Laser vs. Sino Medical Sciences
HanS Laser vs. Shanghai CEO Environmental
HanS Laser vs. Double Medical Technology
The idea behind HanS Laser Tech and State Grid InformationCommunication pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
State Grid vs. Xiamen Bank Co
State Grid vs. Industrial Bank Co
State Grid vs. Shandong Sinoglory Health
State Grid vs. Agricultural Bank of
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY