Correlation Between State Grid and Masterwork Machinery
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By analyzing existing cross correlation between State Grid InformationCommunication and Masterwork Machinery, you can compare the effects of market volatilities on State Grid and Masterwork Machinery 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 Masterwork Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Masterwork Machinery.
Diversification Opportunities for State Grid and Masterwork Machinery
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Masterwork is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Masterwork Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterwork 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 Masterwork Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterwork Machinery has no effect on the direction of State Grid i.e., State Grid and Masterwork Machinery go up and down completely randomly.
Pair Corralation between State Grid and Masterwork Machinery
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.88 times more return on investment than Masterwork Machinery. However, State Grid InformationCommunication is 1.14 times less risky than Masterwork Machinery. It trades about 0.03 of its potential returns per unit of risk. Masterwork Machinery is currently generating about 0.02 per unit of risk. If you would invest 1,671 in State Grid InformationCommunication on August 25, 2024 and sell it today you would earn a total of 411.00 from holding State Grid InformationCommunication or generate 24.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Masterwork Machinery
Performance |
| Timeline |
| State Grid Informati |
| Masterwork Machinery |
State Grid and Masterwork Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Masterwork Machinery
The main advantage of trading using opposite State Grid and Masterwork Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Masterwork Machinery 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 Masterwork Machinery will offset losses from the drop in Masterwork Machinery'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 |
| Masterwork Machinery vs. Nuode Investment Co | Masterwork Machinery vs. CICT Mobile Communication | Masterwork Machinery vs. Wuhan Yangtze Communication | Masterwork Machinery vs. Gome Telecom Equipment |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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