Correlation Between Hangzhou Minsheng and State Grid
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By analyzing existing cross correlation between Hangzhou Minsheng Healthcare and State Grid InformationCommunication, you can compare the effects of market volatilities on Hangzhou Minsheng 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 Hangzhou Minsheng with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Minsheng and State Grid.
Diversification Opportunities for Hangzhou Minsheng and State Grid
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and State is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Minsheng Healthcare 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 Hangzhou Minsheng 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 Hangzhou Minsheng Healthcare 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 Hangzhou Minsheng i.e., Hangzhou Minsheng and State Grid go up and down completely randomly.
Pair Corralation between Hangzhou Minsheng and State Grid
Assuming the 90 days trading horizon Hangzhou Minsheng Healthcare is expected to generate 0.94 times more return on investment than State Grid. However, Hangzhou Minsheng Healthcare is 1.06 times less risky than State Grid. It trades about -0.12 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about -0.25 per unit of risk. If you would invest 1,356 in Hangzhou Minsheng Healthcare on October 30, 2024 and sell it today you would lose (131.00) from holding Hangzhou Minsheng Healthcare or give up 9.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Minsheng Healthcare vs. State Grid InformationCommunic
Performance |
| Timeline |
| Hangzhou Minsheng |
| State Grid Informati |
Hangzhou Minsheng and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Minsheng and State Grid
The main advantage of trading using opposite Hangzhou Minsheng and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Minsheng 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.| Hangzhou Minsheng vs. Aurora Optoelectronics Co | Hangzhou Minsheng vs. Hainan Haiqi Transportation | Hangzhou Minsheng vs. Weihai Honglin Electronic | Hangzhou Minsheng vs. TongFu Microelectronics Co |
| State Grid vs. Ningbo MedicalSystem Biotechnology | State Grid vs. Marssenger Kitchenware Co | State Grid vs. Yindu Kitchen Equipment | State Grid vs. Shandong Sinoglory Health |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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