Correlation Between State Grid and GRG Banking
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By analyzing existing cross correlation between State Grid InformationCommunication and GRG Banking Equipment, you can compare the effects of market volatilities on State Grid and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and GRG Banking.
Diversification Opportunities for State Grid and GRG Banking
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and GRG is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of State Grid i.e., State Grid and GRG Banking go up and down completely randomly.
Pair Corralation between State Grid and GRG Banking
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the GRG Banking. In addition to that, State Grid is 1.07 times more volatile than GRG Banking Equipment. It trades about -0.25 of its total potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.19 per unit of volatility. If you would invest 1,306 in GRG Banking Equipment on October 30, 2024 and sell it today you would lose (193.00) from holding GRG Banking Equipment or give up 14.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. GRG Banking Equipment
Performance |
| Timeline |
| State Grid Informati |
| GRG Banking Equipment |
State Grid and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and GRG Banking
The main advantage of trading using opposite State Grid and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| State Grid vs. Ningbo MedicalSystem Biotechnology | State Grid vs. Marssenger Kitchenware Co | State Grid vs. Yindu Kitchen Equipment | State Grid vs. Shandong Sinoglory Health |
| GRG Banking vs. DO Home Collection | GRG Banking vs. Vohringer Home Technology | GRG Banking vs. Nanjing Putian Telecommunications | GRG Banking vs. Fiberhome Telecommunication Technologies |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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