Correlation Between State Grid and Guangzhou Jinyi
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By analyzing existing cross correlation between State Grid InformationCommunication and Guangzhou Jinyi Media, you can compare the effects of market volatilities on State Grid and Guangzhou Jinyi 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 Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Guangzhou Jinyi.
Diversification Opportunities for State Grid and Guangzhou Jinyi
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between State and Guangzhou is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of State Grid i.e., State Grid and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between State Grid and Guangzhou Jinyi
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Guangzhou Jinyi. But the stock apears to be less risky and, when comparing its historical volatility, State Grid InformationCommunication is 2.5 times less risky than Guangzhou Jinyi. The stock trades about -0.18 of its potential returns per unit of risk. The Guangzhou Jinyi Media is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 788.00 in Guangzhou Jinyi Media on November 1, 2024 and sell it today you would earn a total of 6.00 from holding Guangzhou Jinyi Media or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| State Grid Informati |
| Guangzhou Jinyi Media |
State Grid and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Guangzhou Jinyi
The main advantage of trading using opposite State Grid and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Guangzhou Jinyi 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 Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| State Grid vs. Weihai Honglin Electronic | State Grid vs. Nanjing Putian Telecommunications | State Grid vs. Beijing Bewinner Communications | State Grid vs. BizConf Telecom Co |
| Guangzhou Jinyi vs. Western Metal Materials | Guangzhou Jinyi vs. Shenzhen AV Display Co | Guangzhou Jinyi vs. Lotus Health Group | Guangzhou Jinyi vs. Mingchen Health 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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