Correlation Between State Grid and Chengtun Mining
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By analyzing existing cross correlation between State Grid InformationCommunication and Chengtun Mining Group, you can compare the effects of market volatilities on State Grid and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Chengtun Mining.
Diversification Opportunities for State Grid and Chengtun Mining
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Chengtun is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of State Grid i.e., State Grid and Chengtun Mining go up and down completely randomly.
Pair Corralation between State Grid and Chengtun Mining
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 2.01 times more return on investment than Chengtun Mining. However, State Grid is 2.01 times more volatile than Chengtun Mining Group. It trades about 0.1 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.13 per unit of risk. If you would invest 2,077 in State Grid InformationCommunication on September 3, 2024 and sell it today you would earn a total of 145.00 from holding State Grid InformationCommunication or generate 6.98% 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. Chengtun Mining Group
Performance |
| Timeline |
| State Grid Informati |
| Chengtun Mining Group |
State Grid and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Chengtun Mining
The main advantage of trading using opposite State Grid and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| State Grid vs. Guangdong Jingyi Metal | State Grid vs. Ye Chiu Metal | State Grid vs. Qinghaihuading Industrial Co | State Grid vs. Qijing Machinery |
| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Rongsheng Petrochemical Co | Chengtun Mining vs. Hoshine Silicon Ind |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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