Correlation Between State Grid and Datang HuaYin
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By analyzing existing cross correlation between State Grid InformationCommunication and Datang HuaYin Electric, you can compare the effects of market volatilities on State Grid and Datang HuaYin 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 Datang HuaYin. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Datang HuaYin.
Diversification Opportunities for State Grid and Datang HuaYin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between State and Datang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Datang HuaYin Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang HuaYin Electric 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 Datang HuaYin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang HuaYin Electric has no effect on the direction of State Grid i.e., State Grid and Datang HuaYin go up and down completely randomly.
Pair Corralation between State Grid and Datang HuaYin
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.06 times more return on investment than Datang HuaYin. However, State Grid is 1.06 times more volatile than Datang HuaYin Electric. It trades about 0.04 of its potential returns per unit of risk. Datang HuaYin Electric is currently generating about -0.01 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Datang HuaYin Electric
Performance |
| Timeline |
| State Grid Informati |
| Datang HuaYin Electric |
State Grid and Datang HuaYin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Datang HuaYin
The main advantage of trading using opposite State Grid and Datang HuaYin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Datang HuaYin 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 Datang HuaYin will offset losses from the drop in Datang HuaYin'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 |
| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Bank of China |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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