Correlation Between State Grid and Dawning Information
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By analyzing existing cross correlation between State Grid InformationCommunication and Dawning Information Industry, you can compare the effects of market volatilities on State Grid and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Dawning Information.
Diversification Opportunities for State Grid and Dawning Information
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Dawning is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of State Grid i.e., State Grid and Dawning Information go up and down completely randomly.
Pair Corralation between State Grid and Dawning Information
Assuming the 90 days trading horizon State Grid is expected to generate 2.37 times less return on investment than Dawning Information. But when comparing it to its historical volatility, State Grid InformationCommunication is 1.35 times less risky than Dawning Information. It trades about 0.06 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,443 in Dawning Information Industry on October 18, 2024 and sell it today you would earn a total of 2,006 from holding Dawning Information Industry or generate 45.15% 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. Dawning Information Industry
Performance |
| Timeline |
| State Grid Informati |
| Dawning Information |
State Grid and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Dawning Information
The main advantage of trading using opposite State Grid and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| State Grid vs. Kidswant Children Products | State Grid vs. Postal Savings Bank | State Grid vs. Aluminum Corp of | State Grid vs. Qilu Bank 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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