Correlation Between State Grid and Guangzhou KDT
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By analyzing existing cross correlation between State Grid InformationCommunication and Guangzhou KDT Machinery, you can compare the effects of market volatilities on State Grid and Guangzhou KDT 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 Guangzhou KDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Guangzhou KDT.
Diversification Opportunities for State Grid and Guangzhou KDT
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Guangzhou is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Guangzhou KDT Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KDT Machinery 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 Guangzhou KDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KDT Machinery has no effect on the direction of State Grid i.e., State Grid and Guangzhou KDT go up and down completely randomly.
Pair Corralation between State Grid and Guangzhou KDT
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Guangzhou KDT. In addition to that, State Grid is 1.04 times more volatile than Guangzhou KDT Machinery. It trades about -0.26 of its total potential returns per unit of risk. Guangzhou KDT Machinery is currently generating about 0.03 per unit of volatility. If you would invest 1,719 in Guangzhou KDT Machinery on October 30, 2024 and sell it today you would earn a total of 13.00 from holding Guangzhou KDT Machinery or generate 0.76% 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. Guangzhou KDT Machinery
Performance |
| Timeline |
| State Grid Informati |
| Guangzhou KDT Machinery |
State Grid and Guangzhou KDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Guangzhou KDT
The main advantage of trading using opposite State Grid and Guangzhou KDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Guangzhou KDT 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 Guangzhou KDT will offset losses from the drop in Guangzhou KDT'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 |
| Guangzhou KDT vs. Suzhou Oriental Semiconductor | Guangzhou KDT vs. Ingenic Semiconductor | Guangzhou KDT vs. Shanghai V Test Semiconductor | Guangzhou KDT vs. Cansino Biologics |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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