Correlation Between State Grid and Wintao Communications
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By analyzing existing cross correlation between State Grid InformationCommunication and Wintao Communications Co, you can compare the effects of market volatilities on State Grid and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Wintao Communications.
Diversification Opportunities for State Grid and Wintao Communications
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Wintao is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of State Grid i.e., State Grid and Wintao Communications go up and down completely randomly.
Pair Corralation between State Grid and Wintao Communications
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.69 times more return on investment than Wintao Communications. However, State Grid InformationCommunication is 1.44 times less risky than Wintao Communications. It trades about 0.02 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.0 per unit of risk. If you would invest 1,700 in State Grid InformationCommunication on October 16, 2024 and sell it today you would earn a total of 118.00 from holding State Grid InformationCommunication or generate 6.94% 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. Wintao Communications Co
Performance |
| Timeline |
| State Grid Informati |
| Wintao Communications |
State Grid and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Wintao Communications
The main advantage of trading using opposite State Grid and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| State Grid vs. Beijing Yanjing Brewery | State Grid vs. Everjoy Health Group | State Grid vs. Hangzhou Minsheng Healthcare | State Grid vs. Sanxiang Advanced Materials |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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