Correlation Between State Grid and Gotion High
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By analyzing existing cross correlation between State Grid InformationCommunication and Gotion High tech, you can compare the effects of market volatilities on State Grid and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Gotion High.
Diversification Opportunities for State Grid and Gotion High
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Gotion is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of State Grid i.e., State Grid and Gotion High go up and down completely randomly.
Pair Corralation between State Grid and Gotion High
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.1 times more return on investment than Gotion High. However, State Grid is 1.1 times more volatile than Gotion High tech. It trades about 0.03 of its potential returns per unit of risk. Gotion High tech is currently generating about 0.0 per unit of risk. If you would invest 1,925 in State Grid InformationCommunication on September 12, 2024 and sell it today you would earn a total of 323.00 from holding State Grid InformationCommunication or generate 16.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Gotion High tech
Performance |
| Timeline |
| State Grid Informati |
| Gotion High tech |
State Grid and Gotion High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Gotion High
The main advantage of trading using opposite State Grid and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High's long position.| State Grid vs. Gansu Jiu Steel | State Grid vs. Shandong Mining Machinery | State Grid vs. Aba Chemicals Corp | State Grid vs. BlueFocus Communication Group |
| Gotion High vs. Beijing Wandong Medical | Gotion High vs. Dongguan Tarry Electronics | Gotion High vs. Jiugui Liquor Co | Gotion High vs. Bomin Electronics 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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