Correlation Between State Grid and Asia Potash
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By analyzing existing cross correlation between State Grid InformationCommunication and Asia Potash International, you can compare the effects of market volatilities on State Grid and Asia Potash 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 Asia Potash. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Asia Potash.
Diversification Opportunities for State Grid and Asia Potash
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between State and Asia is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Asia Potash International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Potash International 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 Asia Potash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Potash International has no effect on the direction of State Grid i.e., State Grid and Asia Potash go up and down completely randomly.
Pair Corralation between State Grid and Asia Potash
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Asia Potash. In addition to that, State Grid is 1.3 times more volatile than Asia Potash International. It trades about -0.15 of its total potential returns per unit of risk. Asia Potash International is currently generating about 0.01 per unit of volatility. If you would invest 2,197 in Asia Potash International on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Asia Potash International or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Asia Potash International
Performance |
| Timeline |
| State Grid Informati |
| Asia Potash International |
State Grid and Asia Potash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Asia Potash
The main advantage of trading using opposite State Grid and Asia Potash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Asia Potash 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 Asia Potash will offset losses from the drop in Asia Potash's long position.| State Grid vs. Industrial and Commercial | State Grid vs. Agricultural Bank of | State Grid vs. China Construction Bank | State Grid vs. Bank of China |
| Asia Potash vs. Agricultural Bank of | Asia Potash vs. Industrial and Commercial | Asia Potash vs. Bank of China | Asia Potash vs. PetroChina Co Ltd |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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