Correlation Between State Grid and Luolai Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Grid InformationCommunication and Luolai Home Textile, you can compare the effects of market volatilities on State Grid and Luolai Home 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 Luolai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Luolai Home.
Diversification Opportunities for State Grid and Luolai Home
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between State and Luolai is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Luolai Home Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luolai Home Textile 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 Luolai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luolai Home Textile has no effect on the direction of State Grid i.e., State Grid and Luolai Home go up and down completely randomly.
Pair Corralation between State Grid and Luolai Home
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Luolai Home. But the stock apears to be less risky and, when comparing its historical volatility, State Grid InformationCommunication is 1.5 times less risky than Luolai Home. The stock trades about -0.46 of its potential returns per unit of risk. The Luolai Home Textile is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 877.00 in Luolai Home Textile on October 14, 2024 and sell it today you would lose (95.00) from holding Luolai Home Textile or give up 10.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Luolai Home Textile
Performance |
| Timeline |
| State Grid Informati |
| Luolai Home Textile |
State Grid and Luolai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Luolai Home
The main advantage of trading using opposite State Grid and Luolai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Luolai Home 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 Luolai Home will offset losses from the drop in Luolai Home's long position.| State Grid vs. Shenyang Chemical Industry | State Grid vs. Huasi Agricultural Development | State Grid vs. Dosilicon Co | State Grid vs. Sinomach General Machinery |
| Luolai Home vs. State Grid InformationCommunication | Luolai Home vs. Eastroc Beverage Group | Luolai Home vs. Ligao Foods CoLtd | Luolai Home vs. Sunwave Communications 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |