Correlation Between State Grid and Guangdong Qunxing
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By analyzing existing cross correlation between State Grid InformationCommunication and Guangdong Qunxing Toys, you can compare the effects of market volatilities on State Grid and Guangdong Qunxing 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 Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Guangdong Qunxing.
Diversification Opportunities for State Grid and Guangdong Qunxing
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and Guangdong is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of State Grid i.e., State Grid and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between State Grid and Guangdong Qunxing
Assuming the 90 days trading horizon State Grid is expected to generate 1.76 times less return on investment than Guangdong Qunxing. But when comparing it to its historical volatility, State Grid InformationCommunication is 1.19 times less risky than Guangdong Qunxing. It trades about 0.02 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 624.00 in Guangdong Qunxing Toys on October 16, 2024 and sell it today you would earn a total of 70.00 from holding Guangdong Qunxing Toys or generate 11.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| State Grid Informati |
| Guangdong Qunxing Toys |
State Grid and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Guangdong Qunxing
The main advantage of trading using opposite State Grid and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Guangdong Qunxing 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 Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| State Grid vs. Guizhou Chanhen Chemical | State Grid vs. Telling Telecommunication Holding | State Grid vs. Hengli Petrochemical Co | State Grid vs. Xiangyang Automobile Bearing |
| Guangdong Qunxing vs. State Grid InformationCommunication | Guangdong Qunxing vs. Orinko Advanced Plastics | Guangdong Qunxing vs. Sanxiang Advanced Materials | Guangdong Qunxing vs. Jiangnan Mould Plastic |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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