Correlation Between Guizhou Chanhen and State Grid
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and State Grid InformationCommunication, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and State Grid.
Diversification Opportunities for Guizhou Chanhen and State Grid
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guizhou and State is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical 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 Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and State Grid go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and State Grid
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 0.97 times more return on investment than State Grid. However, Guizhou Chanhen Chemical is 1.03 times less risky than State Grid. It trades about 0.05 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 1,679 in Guizhou Chanhen Chemical on October 16, 2024 and sell it today you would earn a total of 465.00 from holding Guizhou Chanhen Chemical or generate 27.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. State Grid InformationCommunic
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| State Grid Informati |
Guizhou Chanhen and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and State Grid
The main advantage of trading using opposite Guizhou Chanhen and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Guangxi Wuzhou Communications | Guizhou Chanhen vs. Gan Yuan Foods | Guizhou Chanhen vs. Xiwang Foodstuffs Co | Guizhou Chanhen vs. Runjian Communication Co |
| State Grid vs. Guizhou Chanhen Chemical | State Grid vs. Telling Telecommunication Holding | State Grid vs. Hengli Petrochemical Co | State Grid vs. Xiangyang Automobile Bearing |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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