Correlation Between BizConf Telecom and State Grid
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By analyzing existing cross correlation between BizConf Telecom Co and State Grid InformationCommunication, you can compare the effects of market volatilities on BizConf Telecom 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 BizConf Telecom with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of BizConf Telecom and State Grid.
Diversification Opportunities for BizConf Telecom and State Grid
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BizConf and State is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding BizConf Telecom Co 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 BizConf Telecom 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 BizConf Telecom Co 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 BizConf Telecom i.e., BizConf Telecom and State Grid go up and down completely randomly.
Pair Corralation between BizConf Telecom and State Grid
Assuming the 90 days trading horizon BizConf Telecom Co is expected to generate 1.95 times more return on investment than State Grid. However, BizConf Telecom is 1.95 times more volatile than State Grid InformationCommunication. It trades about -0.01 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about -0.18 per unit of risk. If you would invest 1,925 in BizConf Telecom Co on November 1, 2024 and sell it today you would lose (35.00) from holding BizConf Telecom Co or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BizConf Telecom Co vs. State Grid InformationCommunic
Performance |
| Timeline |
| BizConf Telecom |
| State Grid Informati |
BizConf Telecom and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BizConf Telecom and State Grid
The main advantage of trading using opposite BizConf Telecom and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BizConf Telecom 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.| BizConf Telecom vs. Anji Foodstuff Co | BizConf Telecom vs. Great Sun Foods Co | BizConf Telecom vs. Shenzhen Noposion Agrochemicals | BizConf Telecom vs. Miracll Chemicals Co |
| State Grid vs. Weihai Honglin Electronic | State Grid vs. Nanjing Putian Telecommunications | State Grid vs. Beijing Bewinner Communications | State Grid vs. BizConf Telecom Co |
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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