Correlation Between State Grid and Zhongshan Public
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By analyzing existing cross correlation between State Grid InformationCommunication and Zhongshan Public Utilities, you can compare the effects of market volatilities on State Grid and Zhongshan Public 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 State Grid with a short position of Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Zhongshan Public.
Diversification Opportunities for State Grid and Zhongshan Public
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Zhongshan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti and State Grid 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 State Grid InformationCommunication are associated (or correlated) with Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of State Grid i.e., State Grid and Zhongshan Public go up and down completely randomly.
Pair Corralation between State Grid and Zhongshan Public
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Zhongshan Public. In addition to that, State Grid is 1.17 times more volatile than Zhongshan Public Utilities. It trades about -0.46 of its total potential returns per unit of risk. Zhongshan Public Utilities is currently generating about -0.18 per unit of volatility. If you would invest 906.00 in Zhongshan Public Utilities on October 14, 2024 and sell it today you would lose (47.00) from holding Zhongshan Public Utilities or give up 5.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Zhongshan Public Utilities
Performance |
| Timeline |
| State Grid Informati |
| Zhongshan Public Uti |
State Grid and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Zhongshan Public
The main advantage of trading using opposite State Grid and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| State Grid vs. Shenyang Chemical Industry | State Grid vs. Huasi Agricultural Development | State Grid vs. Dosilicon Co | State Grid vs. Sinomach General Machinery |
| Zhongshan Public vs. Runjian Communication Co | Zhongshan Public vs. State Grid InformationCommunication | Zhongshan Public vs. Wuhan Yangtze Communication | Zhongshan Public vs. Western Metal Materials |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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