Correlation Between State Grid and Longmaster Information
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By analyzing existing cross correlation between State Grid InformationCommunication and Longmaster Information Tech, you can compare the effects of market volatilities on State Grid and Longmaster Information 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 Longmaster Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Longmaster Information.
Diversification Opportunities for State Grid and Longmaster Information
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Longmaster is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Longmaster Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longmaster Information 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 Longmaster Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longmaster Information has no effect on the direction of State Grid i.e., State Grid and Longmaster Information go up and down completely randomly.
Pair Corralation between State Grid and Longmaster Information
Assuming the 90 days trading horizon State Grid is expected to generate 3.17 times less return on investment than Longmaster Information. But when comparing it to its historical volatility, State Grid InformationCommunication is 1.67 times less risky than Longmaster Information. It trades about 0.02 of its potential returns per unit of risk. Longmaster Information Tech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,136 in Longmaster Information Tech on October 13, 2024 and sell it today you would earn a total of 214.00 from holding Longmaster Information Tech or generate 18.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Longmaster Information Tech
Performance |
| Timeline |
| State Grid Informati |
| Longmaster Information |
State Grid and Longmaster Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Longmaster Information
The main advantage of trading using opposite State Grid and Longmaster Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Longmaster Information 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 Longmaster Information will offset losses from the drop in Longmaster Information's long position.| State Grid vs. Dymatic Chemicals | State Grid vs. Shanghai Shibei Hi Tech | State Grid vs. FSPG Hi Tech Co | State Grid vs. Guangzhou Jointas Chemical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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