Correlation Between State Grid and Bank of Changsha
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By analyzing existing cross correlation between State Grid InformationCommunication and Bank of Changsha, you can compare the effects of market volatilities on State Grid and Bank of Changsha 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 Bank of Changsha. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Bank of Changsha.
Diversification Opportunities for State Grid and Bank of Changsha
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Bank is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Bank of Changsha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Changsha 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 Bank of Changsha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Changsha has no effect on the direction of State Grid i.e., State Grid and Bank of Changsha go up and down completely randomly.
Pair Corralation between State Grid and Bank of Changsha
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Bank of Changsha. In addition to that, State Grid is 2.25 times more volatile than Bank of Changsha. It trades about -0.22 of its total potential returns per unit of risk. Bank of Changsha is currently generating about 0.1 per unit of volatility. If you would invest 852.00 in Bank of Changsha on September 12, 2024 and sell it today you would earn a total of 26.00 from holding Bank of Changsha or generate 3.05% 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. Bank of Changsha
Performance |
| Timeline |
| State Grid Informati |
| Bank of Changsha |
State Grid and Bank of Changsha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Bank of Changsha
The main advantage of trading using opposite State Grid and Bank of Changsha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Bank of Changsha 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 Bank of Changsha will offset losses from the drop in Bank of Changsha's long position.| State Grid vs. Gansu Jiu Steel | State Grid vs. Shandong Mining Machinery | State Grid vs. Aba Chemicals Corp | State Grid vs. BlueFocus Communication Group |
| Bank of Changsha vs. Panda Dairy Corp | Bank of Changsha vs. State Grid InformationCommunication | Bank of Changsha vs. Suzhou Weizhixiang Food | Bank of Changsha vs. Zhongyin Babi Food |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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