Correlation Between State Grid and Yangmei Chemical
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By analyzing existing cross correlation between State Grid InformationCommunication and Yangmei Chemical Co, you can compare the effects of market volatilities on State Grid and Yangmei Chemical 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 Yangmei Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Yangmei Chemical.
Diversification Opportunities for State Grid and Yangmei Chemical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Yangmei is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Yangmei Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangmei Chemical 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 Yangmei Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangmei Chemical has no effect on the direction of State Grid i.e., State Grid and Yangmei Chemical go up and down completely randomly.
Pair Corralation between State Grid and Yangmei Chemical
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.0 times more return on investment than Yangmei Chemical. However, State Grid is 1.0 times more volatile than Yangmei Chemical Co. It trades about 0.02 of its potential returns per unit of risk. Yangmei Chemical Co is currently generating about -0.02 per unit of risk. If you would invest 1,692 in State Grid InformationCommunication on November 2, 2024 and sell it today you would earn a total of 88.00 from holding State Grid InformationCommunication or generate 5.2% 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. Yangmei Chemical Co
Performance |
| Timeline |
| State Grid Informati |
| Yangmei Chemical |
State Grid and Yangmei Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Yangmei Chemical
The main advantage of trading using opposite State Grid and Yangmei Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Yangmei Chemical 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 Yangmei Chemical will offset losses from the drop in Yangmei Chemical's long position.| State Grid vs. Xiamen Bank Co | State Grid vs. Industrial Bank Co | State Grid vs. Shandong Sinoglory Health | State Grid vs. Agricultural Bank of |
| Yangmei Chemical vs. Beijing Jiaman Dress | Yangmei Chemical vs. GRINM Semiconductor Materials | Yangmei Chemical vs. Zbit Semiconductor A | Yangmei Chemical vs. Union Semiconductor Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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