Correlation Between State Grid and Cinda Securities
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By analyzing existing cross correlation between State Grid InformationCommunication and Cinda Securities Co, you can compare the effects of market volatilities on State Grid and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Cinda Securities.
Diversification Opportunities for State Grid and Cinda Securities
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Cinda is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of State Grid i.e., State Grid and Cinda Securities go up and down completely randomly.
Pair Corralation between State Grid and Cinda Securities
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Cinda Securities. But the stock apears to be less risky and, when comparing its historical volatility, State Grid InformationCommunication is 1.46 times less risky than Cinda Securities. The stock trades about -0.32 of its potential returns per unit of risk. The Cinda Securities Co is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 1,519 in Cinda Securities Co on October 25, 2024 and sell it today you would lose (154.00) from holding Cinda Securities Co or give up 10.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Cinda Securities Co
Performance |
| Timeline |
| State Grid Informati |
| Cinda Securities |
State Grid and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Cinda Securities
The main advantage of trading using opposite State Grid and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| State Grid vs. Xiandai Investment Co | State Grid vs. Huaxia Fund Management | State Grid vs. Jahen Household Products | State Grid vs. Chengdu Spaceon Electronics |
| Cinda Securities vs. Do Fluoride Chemicals Co | Cinda Securities vs. Shenzhen Noposion Agrochemicals | Cinda Securities vs. Aba Chemicals Corp | Cinda Securities vs. Lianhe Chemical Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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