Correlation Between Xinjiang Communications and State Grid
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By analyzing existing cross correlation between Xinjiang Communications Construction and State Grid InformationCommunication, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and State Grid.
Diversification Opportunities for Xinjiang Communications and State Grid
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and State is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr 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 Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and State Grid go up and down completely randomly.
Pair Corralation between Xinjiang Communications and State Grid
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 0.73 times more return on investment than State Grid. However, Xinjiang Communications Construction is 1.37 times less risky than State Grid. It trades about 0.18 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.09 per unit of risk. If you would invest 1,159 in Xinjiang Communications Construction on September 4, 2024 and sell it today you would earn a total of 126.00 from holding Xinjiang Communications Construction or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. State Grid InformationCommunic
Performance |
| Timeline |
| Xinjiang Communications |
| State Grid Informati |
Xinjiang Communications and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and State Grid
The main advantage of trading using opposite Xinjiang Communications and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. China Life Insurance | Xinjiang Communications vs. Cinda Securities Co | Xinjiang Communications vs. Piotech Inc A | Xinjiang Communications vs. Dongxing Sec Co |
| State Grid vs. Industrial and Commercial | State Grid vs. China Construction Bank | State Grid vs. Bank of China | 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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