Correlation Between Henzhen Zhaowei and State Grid
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By analyzing existing cross correlation between Henzhen Zhaowei Machinery and State Grid InformationCommunication, you can compare the effects of market volatilities on Henzhen Zhaowei 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 Henzhen Zhaowei with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henzhen Zhaowei and State Grid.
Diversification Opportunities for Henzhen Zhaowei and State Grid
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Henzhen and State is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Henzhen Zhaowei Machinery 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 Henzhen Zhaowei 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 Henzhen Zhaowei Machinery 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 Henzhen Zhaowei i.e., Henzhen Zhaowei and State Grid go up and down completely randomly.
Pair Corralation between Henzhen Zhaowei and State Grid
Assuming the 90 days trading horizon Henzhen Zhaowei Machinery is expected to generate 1.57 times more return on investment than State Grid. However, Henzhen Zhaowei is 1.57 times more volatile than State Grid InformationCommunication. It trades about 0.21 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.05 per unit of risk. If you would invest 4,492 in Henzhen Zhaowei Machinery on August 31, 2024 and sell it today you would earn a total of 2,244 from holding Henzhen Zhaowei Machinery or generate 49.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henzhen Zhaowei Machinery vs. State Grid InformationCommunic
Performance |
| Timeline |
| Henzhen Zhaowei Machinery |
| State Grid Informati |
Henzhen Zhaowei and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henzhen Zhaowei and State Grid
The main advantage of trading using opposite Henzhen Zhaowei and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henzhen Zhaowei 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.| Henzhen Zhaowei vs. Cultural Investment Holdings | Henzhen Zhaowei vs. Gome Telecom Equipment | Henzhen Zhaowei vs. Bus Online Co | Henzhen Zhaowei vs. Holitech Technology Co |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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