Correlation Between State Grid and Boai NKY
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By analyzing existing cross correlation between State Grid InformationCommunication and Boai NKY Pharmaceuticals, you can compare the effects of market volatilities on State Grid and Boai NKY 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 Boai NKY. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Boai NKY.
Diversification Opportunities for State Grid and Boai NKY
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Boai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Boai NKY Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boai NKY Pharmaceuticals 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 Boai NKY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boai NKY Pharmaceuticals has no effect on the direction of State Grid i.e., State Grid and Boai NKY go up and down completely randomly.
Pair Corralation between State Grid and Boai NKY
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.82 times more return on investment than Boai NKY. However, State Grid InformationCommunication is 1.22 times less risky than Boai NKY. It trades about 0.05 of its potential returns per unit of risk. Boai NKY Pharmaceuticals is currently generating about 0.0 per unit of risk. If you would invest 1,409 in State Grid InformationCommunication on September 12, 2024 and sell it today you would earn a total of 839.00 from holding State Grid InformationCommunication or generate 59.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Boai NKY Pharmaceuticals
Performance |
| Timeline |
| State Grid Informati |
| Boai NKY Pharmaceuticals |
State Grid and Boai NKY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Boai NKY
The main advantage of trading using opposite State Grid and Boai NKY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Boai NKY 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 Boai NKY will offset losses from the drop in Boai NKY's long position.| State Grid vs. Gansu Jiu Steel | State Grid vs. Shandong Mining Machinery | State Grid vs. Aba Chemicals Corp | State Grid vs. BlueFocus Communication Group |
| Boai NKY vs. Miracll Chemicals Co | Boai NKY vs. Dymatic Chemicals | Boai NKY vs. State Grid InformationCommunication | Boai NKY vs. Jilin Chemical Fibre |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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