Correlation Between State Grid and Guangzhou Seagull
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By analyzing existing cross correlation between State Grid InformationCommunication and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on State Grid and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Guangzhou Seagull.
Diversification Opportunities for State Grid and Guangzhou Seagull
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Guangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of State Grid i.e., State Grid and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between State Grid and Guangzhou Seagull
Assuming the 90 days trading horizon State Grid is expected to generate 1.27 times less return on investment than Guangzhou Seagull. In addition to that, State Grid is 1.23 times more volatile than Guangzhou Seagull Kitchen. It trades about 0.16 of its total potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.26 per unit of volatility. If you would invest 243.00 in Guangzhou Seagull Kitchen on September 12, 2024 and sell it today you would earn a total of 113.00 from holding Guangzhou Seagull Kitchen or generate 46.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| State Grid Informati |
| Guangzhou Seagull Kitchen |
State Grid and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Guangzhou Seagull
The main advantage of trading using opposite State Grid and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull'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 |
| Guangzhou Seagull vs. Kweichow Moutai Co | Guangzhou Seagull vs. Shenzhen Mindray Bio Medical | Guangzhou Seagull vs. Jiangsu Pacific Quartz | Guangzhou Seagull vs. G bits Network Technology |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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