Correlation Between State Grid and Guosheng Financial
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By analyzing existing cross correlation between State Grid InformationCommunication and Guosheng Financial Holding, you can compare the effects of market volatilities on State Grid and Guosheng Financial 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 Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Guosheng Financial.
Diversification Opportunities for State Grid and Guosheng Financial
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between State and Guosheng is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial 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 Guosheng Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guosheng Financial has no effect on the direction of State Grid i.e., State Grid and Guosheng Financial go up and down completely randomly.
Pair Corralation between State Grid and Guosheng Financial
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.3 times more return on investment than Guosheng Financial. However, State Grid is 1.3 times more volatile than Guosheng Financial Holding. It trades about -0.02 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about -0.11 per unit of risk. If you would invest 1,973 in State Grid InformationCommunication on December 11, 2024 and sell it today you would lose (45.00) from holding State Grid InformationCommunication or give up 2.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Guosheng Financial Holding
Performance |
| Timeline |
| State Grid Informati |
| Guosheng Financial |
State Grid and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Guosheng Financial
The main advantage of trading using opposite State Grid and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Guosheng Financial 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 Guosheng Financial will offset losses from the drop in Guosheng Financial's long position.| State Grid vs. China Satellite Communications | State Grid vs. Datang Telecom Technology | State Grid vs. Henan Shuanghui Investment | State Grid vs. Beijing Mainstreets Investment |
| Guosheng Financial vs. Tjk Machinery Tianjin | Guosheng Financial vs. XCMG Construction Machinery | Guosheng Financial vs. Ningbo Homelink Eco iTech | Guosheng Financial vs. Tederic Machinery 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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