Correlation Between State Grid and Tianjin Hi
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By analyzing existing cross correlation between State Grid InformationCommunication and Tianjin Hi Tech Development, you can compare the effects of market volatilities on State Grid and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Tianjin Hi.
Diversification Opportunities for State Grid and Tianjin Hi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Tianjin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of State Grid i.e., State Grid and Tianjin Hi go up and down completely randomly.
Pair Corralation between State Grid and Tianjin Hi
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.01 times more return on investment than Tianjin Hi. However, State Grid is 1.01 times more volatile than Tianjin Hi Tech Development. It trades about 0.04 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.0 per unit of risk. If you would invest 1,524 in State Grid InformationCommunication on September 4, 2024 and sell it today you would earn a total of 691.00 from holding State Grid InformationCommunication or generate 45.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| State Grid Informati |
| Tianjin Hi Tech |
State Grid and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Tianjin Hi
The main advantage of trading using opposite State Grid and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| State Grid vs. Industrial and Commercial | State Grid vs. China Construction Bank | State Grid vs. Bank of China | State Grid vs. Agricultural Bank of |
| Tianjin Hi vs. PetroChina Co Ltd | Tianjin Hi vs. China Mobile Limited | Tianjin Hi vs. CNOOC Limited | Tianjin Hi vs. Ping An Insurance |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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