Correlation Between State Grid and Runjian Communication
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By analyzing existing cross correlation between State Grid InformationCommunication and Runjian Communication Co, you can compare the effects of market volatilities on State Grid and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Runjian Communication.
Diversification Opportunities for State Grid and Runjian Communication
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Runjian is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of State Grid i.e., State Grid and Runjian Communication go up and down completely randomly.
Pair Corralation between State Grid and Runjian Communication
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.56 times more return on investment than Runjian Communication. However, State Grid is 1.56 times more volatile than Runjian Communication Co. It trades about 0.08 of its potential returns per unit of risk. Runjian Communication Co is currently generating about -0.09 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Runjian Communication Co
Performance |
| Timeline |
| State Grid Informati |
| Runjian Communication |
State Grid and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Runjian Communication
The main advantage of trading using opposite State Grid and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication'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 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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