Correlation Between Hubeiyichang Transportation and State Grid
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubeiyichang Transportation Group and State Grid InformationCommunication, you can compare the effects of market volatilities on Hubeiyichang Transportation 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 Hubeiyichang Transportation with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and State Grid.
Diversification Opportunities for Hubeiyichang Transportation and State Grid
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubeiyichang and State is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr 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 Hubeiyichang Transportation 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 Hubeiyichang Transportation Group 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 Hubeiyichang Transportation i.e., Hubeiyichang Transportation and State Grid go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and State Grid
Assuming the 90 days trading horizon Hubeiyichang Transportation is expected to generate 1.4 times less return on investment than State Grid. But when comparing it to its historical volatility, Hubeiyichang Transportation Group is 2.78 times less risky than State Grid. It trades about 0.13 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,990 in State Grid InformationCommunication on August 31, 2024 and sell it today you would earn a total of 83.00 from holding State Grid InformationCommunication or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubeiyichang Transportation Gr vs. State Grid InformationCommunic
Performance |
| Timeline |
| Hubeiyichang Transportation |
| State Grid Informati |
Hubeiyichang Transportation and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubeiyichang Transportation and State Grid
The main advantage of trading using opposite Hubeiyichang Transportation and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation 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.The idea behind Hubeiyichang Transportation Group 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. Industrial and Commercial | State Grid vs. Kweichow Moutai Co | State Grid vs. Agricultural Bank of | State Grid vs. China Mobile Limited |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |