Correlation Between State Grid and Tjk Machinery
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By analyzing existing cross correlation between State Grid InformationCommunication and Tjk Machinery Tianjin, you can compare the effects of market volatilities on State Grid and Tjk 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 Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Tjk Machinery.
Diversification Opportunities for State Grid and Tjk Machinery
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Tjk is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin 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 Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of State Grid i.e., State Grid and Tjk Machinery go up and down completely randomly.
Pair Corralation between State Grid and Tjk Machinery
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Tjk Machinery. But the stock apears to be less risky and, when comparing its historical volatility, State Grid InformationCommunication is 1.63 times less risky than Tjk Machinery. The stock trades about -0.18 of its potential returns per unit of risk. The Tjk Machinery Tianjin is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,301 in Tjk Machinery Tianjin on November 1, 2024 and sell it today you would earn a total of 30.00 from holding Tjk Machinery Tianjin or generate 2.31% 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. Tjk Machinery Tianjin
Performance |
| Timeline |
| State Grid Informati |
| Tjk Machinery Tianjin |
State Grid and Tjk Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Tjk Machinery
The main advantage of trading using opposite State Grid and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Tjk 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 Tjk Machinery will offset losses from the drop in Tjk Machinery'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 |
| Tjk Machinery vs. Beijing Enlight Media | Tjk Machinery vs. Shuhua Sports Co | Tjk Machinery vs. Southern PublishingMedia Co | Tjk Machinery vs. Everdisplay Optronics Shanghai |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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