Correlation Between State Grid and Shenzhen Topway
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By analyzing existing cross correlation between State Grid InformationCommunication and Shenzhen Topway Video, you can compare the effects of market volatilities on State Grid and Shenzhen Topway 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 Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Shenzhen Topway.
Diversification Opportunities for State Grid and Shenzhen Topway
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Shenzhen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video 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 Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of State Grid i.e., State Grid and Shenzhen Topway go up and down completely randomly.
Pair Corralation between State Grid and Shenzhen Topway
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.67 times more return on investment than Shenzhen Topway. However, State Grid InformationCommunication is 1.49 times less risky than Shenzhen Topway. It trades about -0.25 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about -0.21 per unit of risk. If you would invest 2,222 in State Grid InformationCommunication on October 30, 2024 and sell it today you would lose (442.00) from holding State Grid InformationCommunication or give up 19.89% 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. Shenzhen Topway Video
Performance |
| Timeline |
| State Grid Informati |
| Shenzhen Topway Video |
State Grid and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Shenzhen Topway
The main advantage of trading using opposite State Grid and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Shenzhen Topway 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 Shenzhen Topway will offset losses from the drop in Shenzhen Topway'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 |
| Shenzhen Topway vs. Zhejiang Yinlun Machinery | Shenzhen Topway vs. Linzhou Heavy Machinery | Shenzhen Topway vs. Sportsoul Co Ltd | Shenzhen Topway vs. Guangzhou Restaurants Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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