Correlation Between State Grid and Zhejiang Kingland
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By analyzing existing cross correlation between State Grid InformationCommunication and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on State Grid and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Zhejiang Kingland.
Diversification Opportunities for State Grid and Zhejiang Kingland
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Zhejiang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of State Grid i.e., State Grid and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between State Grid and Zhejiang Kingland
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.22 times more return on investment than Zhejiang Kingland. However, State Grid is 1.22 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.13 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.14 per unit of risk. If you would invest 1,779 in State Grid InformationCommunication on August 26, 2024 and sell it today you would earn a total of 303.00 from holding State Grid InformationCommunication or generate 17.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| State Grid Informati |
| Zhejiang Kingland |
State Grid and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Zhejiang Kingland
The main advantage of trading using opposite State Grid and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| State Grid vs. Kweichow Moutai Co | State Grid vs. NAURA Technology Group | State Grid vs. APT Medical | State Grid vs. BYD Co Ltd |
| Zhejiang Kingland vs. COL Digital Publishing | Zhejiang Kingland vs. Tianjin Tianyao Pharmaceuticals | Zhejiang Kingland vs. Guocheng Mining Co | Zhejiang Kingland vs. Yonghui Superstores 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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