Correlation Between State Grid and Invengo Information
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By analyzing existing cross correlation between State Grid InformationCommunication and Invengo Information Technology, you can compare the effects of market volatilities on State Grid and Invengo Information 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 Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Invengo Information.
Diversification Opportunities for State Grid and Invengo Information
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Invengo is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information 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 Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of State Grid i.e., State Grid and Invengo Information go up and down completely randomly.
Pair Corralation between State Grid and Invengo Information
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Invengo Information. But the stock apears to be less risky and, when comparing its historical volatility, State Grid InformationCommunication is 1.72 times less risky than Invengo Information. The stock trades about -0.23 of its potential returns per unit of risk. The Invengo Information Technology is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 605.00 in Invengo Information Technology on October 28, 2024 and sell it today you would lose (45.00) from holding Invengo Information Technology or give up 7.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Invengo Information Technology
Performance |
| Timeline |
| State Grid Informati |
| Invengo Information |
State Grid and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Invengo Information
The main advantage of trading using opposite State Grid and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| State Grid vs. Industrial and Commercial | State Grid vs. Kweichow Moutai Co | State Grid vs. Agricultural Bank of | State Grid vs. China Mobile Limited |
| Invengo Information vs. Western Mining Co | Invengo Information vs. Hunan Mendale Hometextile | Invengo Information vs. Shenyang Blue Silver | Invengo Information vs. DO Home Collection |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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