Correlation Between State Grid and Shenyang Huitian
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By analyzing existing cross correlation between State Grid InformationCommunication and Shenyang Huitian Thermal, you can compare the effects of market volatilities on State Grid and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Shenyang Huitian.
Diversification Opportunities for State Grid and Shenyang Huitian
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between State and Shenyang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of State Grid i.e., State Grid and Shenyang Huitian go up and down completely randomly.
Pair Corralation between State Grid and Shenyang Huitian
Assuming the 90 days trading horizon State Grid is expected to generate 1.02 times less return on investment than Shenyang Huitian. But when comparing it to its historical volatility, State Grid InformationCommunication is 1.1 times less risky than Shenyang Huitian. It trades about 0.08 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Shenyang Huitian Thermal on August 28, 2024 and sell it today you would earn a total of 19.00 from holding Shenyang Huitian Thermal or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| State Grid Informati |
| Shenyang Huitian Thermal |
State Grid and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Shenyang Huitian
The main advantage of trading using opposite State Grid and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| State Grid vs. Kweichow Moutai Co | State Grid vs. NAURA Technology Group | State Grid vs. APT Medical | State Grid vs. BYD Co Ltd |
| Shenyang Huitian vs. Dongfeng Automobile Co | Shenyang Huitian vs. Do Fluoride Chemicals Co | Shenyang Huitian vs. Hubei Xingfa Chemicals | Shenyang Huitian vs. Shenzhen Kexin Communication |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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