Correlation Between State Grid and Citic Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Grid InformationCommunication and Citic Guoan Wine, you can compare the effects of market volatilities on State Grid and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Citic Guoan.
Diversification Opportunities for State Grid and Citic Guoan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between State and Citic is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of State Grid i.e., State Grid and Citic Guoan go up and down completely randomly.
Pair Corralation between State Grid and Citic Guoan
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.87 times more return on investment than Citic Guoan. However, State Grid InformationCommunication is 1.15 times less risky than Citic Guoan. It trades about 0.07 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about 0.05 per unit of risk. If you would invest 1,779 in State Grid InformationCommunication on September 1, 2024 and sell it today you would earn a total of 443.00 from holding State Grid InformationCommunication or generate 24.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Citic Guoan Wine
Performance |
| Timeline |
| State Grid Informati |
| Citic Guoan Wine |
State Grid and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Citic Guoan
The main advantage of trading using opposite State Grid and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| State Grid vs. Guangzhou KingTeller Technology | State Grid vs. Aofu Environmental Technology | State Grid vs. Guangdong Liantai Environmental | State Grid vs. Hubei Forbon Technology |
| Citic Guoan vs. Xinjiang Baodi Mining | Citic Guoan vs. Minmetals Capital Co | Citic Guoan vs. Lutian Machinery Co | Citic Guoan vs. Shanghai Rightongene Biotechnology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |