Correlation Between State Grid and Hangzhou Guotai
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By analyzing existing cross correlation between State Grid InformationCommunication and Hangzhou Guotai Environmental, you can compare the effects of market volatilities on State Grid and Hangzhou Guotai 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 Hangzhou Guotai. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Hangzhou Guotai.
Diversification Opportunities for State Grid and Hangzhou Guotai
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between State and Hangzhou is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Hangzhou Guotai Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Guotai Envi 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 Hangzhou Guotai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Guotai Envi has no effect on the direction of State Grid i.e., State Grid and Hangzhou Guotai go up and down completely randomly.
Pair Corralation between State Grid and Hangzhou Guotai
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.79 times more return on investment than Hangzhou Guotai. However, State Grid InformationCommunication is 1.26 times less risky than Hangzhou Guotai. It trades about 0.02 of its potential returns per unit of risk. Hangzhou Guotai Environmental is currently generating about 0.01 per unit of risk. If you would invest 1,721 in State Grid InformationCommunication on November 5, 2024 and sell it today you would earn a total of 59.00 from holding State Grid InformationCommunication or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.68% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Hangzhou Guotai Environmental
Performance |
| Timeline |
| State Grid Informati |
| Hangzhou Guotai Envi |
State Grid and Hangzhou Guotai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Hangzhou Guotai
The main advantage of trading using opposite State Grid and Hangzhou Guotai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Hangzhou Guotai 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 Hangzhou Guotai will offset losses from the drop in Hangzhou Guotai's long position.| State Grid vs. JCHX Mining Management | State Grid vs. Zijin Mining Group | State Grid vs. Guotai Epoint Software | State Grid vs. Servyou Software Group |
| Hangzhou Guotai vs. Advanced Technology Materials | Hangzhou Guotai vs. GreenTech Environmental Co | Hangzhou Guotai vs. Malion New Materials | Hangzhou Guotai vs. Guangdong Liantai Environmental |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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