Correlation Between Sichuan Newsnet and State Grid
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By analyzing existing cross correlation between Sichuan Newsnet Media and State Grid InformationCommunication, you can compare the effects of market volatilities on Sichuan Newsnet 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 Sichuan Newsnet with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Newsnet and State Grid.
Diversification Opportunities for Sichuan Newsnet and State Grid
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and State is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Newsnet Media 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 Sichuan Newsnet 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 Sichuan Newsnet Media 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 Sichuan Newsnet i.e., Sichuan Newsnet and State Grid go up and down completely randomly.
Pair Corralation between Sichuan Newsnet and State Grid
Assuming the 90 days trading horizon Sichuan Newsnet Media is expected to generate 2.45 times more return on investment than State Grid. However, Sichuan Newsnet is 2.45 times more volatile than State Grid InformationCommunication. It trades about 0.11 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 1,416 in Sichuan Newsnet Media on November 1, 2024 and sell it today you would earn a total of 108.00 from holding Sichuan Newsnet Media or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Newsnet Media vs. State Grid InformationCommunic
Performance |
| Timeline |
| Sichuan Newsnet Media |
| State Grid Informati |
Sichuan Newsnet and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Newsnet and State Grid
The main advantage of trading using opposite Sichuan Newsnet and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Newsnet 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.| Sichuan Newsnet vs. Allgens Medical Technology | Sichuan Newsnet vs. Double Medical Technology | Sichuan Newsnet vs. Shandong Intco Medical | Sichuan Newsnet vs. Shenzhen Glory Medical |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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