Correlation Between State Grid and Guangdong Jingyi
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By analyzing existing cross correlation between State Grid InformationCommunication and Guangdong Jingyi Metal, you can compare the effects of market volatilities on State Grid and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Guangdong Jingyi.
Diversification Opportunities for State Grid and Guangdong Jingyi
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Guangdong is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of State Grid i.e., State Grid and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between State Grid and Guangdong Jingyi
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.96 times more return on investment than Guangdong Jingyi. However, State Grid InformationCommunication is 1.05 times less risky than Guangdong Jingyi. It trades about 0.02 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.01 per unit of risk. If you would invest 1,686 in State Grid InformationCommunication on October 30, 2024 and sell it today you would earn a total of 94.00 from holding State Grid InformationCommunication or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| State Grid Informati |
| Guangdong Jingyi Metal |
State Grid and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Guangdong Jingyi
The main advantage of trading using opposite State Grid and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi'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 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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