Correlation Between State Grid and Guangdong Shenglu
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By analyzing existing cross correlation between State Grid InformationCommunication and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on State Grid and Guangdong Shenglu 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 Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Guangdong Shenglu.
Diversification Opportunities for State Grid and Guangdong Shenglu
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between State and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of State Grid i.e., State Grid and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between State Grid and Guangdong Shenglu
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.22 times more return on investment than Guangdong Shenglu. However, State Grid is 1.22 times more volatile than Guangdong Shenglu Telecommunication. It trades about 0.08 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.01 per unit of risk. If you would invest 1,935 in State Grid InformationCommunication on August 29, 2024 and sell it today you would earn a total of 109.00 from holding State Grid InformationCommunication or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| State Grid Informati |
| Guangdong Shenglu |
State Grid and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Guangdong Shenglu
The main advantage of trading using opposite State Grid and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Guangdong Shenglu 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 Shenglu will offset losses from the drop in Guangdong Shenglu'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 |
| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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