Correlation Between State Grid and Zhonghong Pulin
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By analyzing existing cross correlation between State Grid InformationCommunication and Zhonghong Pulin Medical, you can compare the effects of market volatilities on State Grid and Zhonghong Pulin 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 Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Zhonghong Pulin.
Diversification Opportunities for State Grid and Zhonghong Pulin
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Zhonghong is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical 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 Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of State Grid i.e., State Grid and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between State Grid and Zhonghong Pulin
Assuming the 90 days trading horizon State Grid is expected to generate 2.03 times less return on investment than Zhonghong Pulin. But when comparing it to its historical volatility, State Grid InformationCommunication is 1.41 times less risky than Zhonghong Pulin. It trades about 0.06 of its potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 925.00 in Zhonghong Pulin Medical on October 18, 2024 and sell it today you would earn a total of 326.00 from holding Zhonghong Pulin Medical or generate 35.24% 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. Zhonghong Pulin Medical
Performance |
| Timeline |
| State Grid Informati |
| Zhonghong Pulin Medical |
State Grid and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Zhonghong Pulin
The main advantage of trading using opposite State Grid and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin's long position.| State Grid vs. Kidswant Children Products | State Grid vs. Postal Savings Bank | State Grid vs. Aluminum Corp of | State Grid vs. Qilu Bank Co |
| Zhonghong Pulin vs. Shenzhen SDG Information | Zhonghong Pulin vs. Humanwell Healthcare Group | Zhonghong Pulin vs. Yindu Kitchen Equipment | Zhonghong Pulin vs. State Grid InformationCommunication |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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