Correlation Between State Grid and Cultural Investment
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By analyzing existing cross correlation between State Grid InformationCommunication and Cultural Investment Holdings, you can compare the effects of market volatilities on State Grid and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Cultural Investment.
Diversification Opportunities for State Grid and Cultural Investment
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Cultural is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of State Grid i.e., State Grid and Cultural Investment go up and down completely randomly.
Pair Corralation between State Grid and Cultural Investment
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.97 times more return on investment than Cultural Investment. However, State Grid InformationCommunication is 1.04 times less risky than Cultural Investment. It trades about -0.12 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.13 per unit of risk. If you would invest 1,848 in State Grid InformationCommunication on November 3, 2024 and sell it today you would lose (68.00) from holding State Grid InformationCommunication or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Cultural Investment Holdings
Performance |
| Timeline |
| State Grid Informati |
| Cultural Investment |
State Grid and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Cultural Investment
The main advantage of trading using opposite State Grid and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment'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 |
| Cultural Investment vs. Suzhou Weizhixiang Food | Cultural Investment vs. Guizhou Chanhen Chemical | Cultural Investment vs. Gan Yuan Foods | Cultural Investment vs. Bsm Chemical 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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