Correlation Between Guangdong Shenglu and State Grid
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and State Grid InformationCommunication, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and State Grid.
Diversification Opportunities for Guangdong Shenglu and State Grid
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and State is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and State Grid go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and State Grid
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the State Grid. In addition to that, Guangdong Shenglu is 1.12 times more volatile than State Grid InformationCommunication. It trades about -0.01 of its total potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.02 per unit of volatility. If you would invest 1,849 in State Grid InformationCommunication on August 29, 2024 and sell it today you would earn a total of 195.00 from holding State Grid InformationCommunication or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. State Grid InformationCommunic
Performance |
| Timeline |
| Guangdong Shenglu |
| State Grid Informati |
Guangdong Shenglu and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and State Grid
The main advantage of trading using opposite Guangdong Shenglu and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
| State Grid vs. Kweichow Moutai Co | State Grid vs. NAURA Technology Group | State Grid vs. APT Medical | State Grid vs. BYD Co Ltd |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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