Correlation Between State Grid and Great Sun
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By analyzing existing cross correlation between State Grid InformationCommunication and Great Sun Foods Co, you can compare the effects of market volatilities on State Grid and Great Sun 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 Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Great Sun.
Diversification Opportunities for State Grid and Great Sun
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between State and Great is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods 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 Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of State Grid i.e., State Grid and Great Sun go up and down completely randomly.
Pair Corralation between State Grid and Great Sun
Assuming the 90 days trading horizon State Grid is expected to generate 1.58 times less return on investment than Great Sun. But when comparing it to its historical volatility, State Grid InformationCommunication is 1.25 times less risky than Great Sun. It trades about 0.16 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 329.00 in Great Sun Foods Co on September 4, 2024 and sell it today you would earn a total of 180.00 from holding Great Sun Foods Co or generate 54.71% 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. Great Sun Foods Co
Performance |
| Timeline |
| State Grid Informati |
| Great Sun Foods |
State Grid and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Great Sun
The main advantage of trading using opposite State Grid and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun'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 |
| Great Sun vs. Jilin Jlu Communication | Great Sun vs. State Grid InformationCommunication | Great Sun vs. Eastern Communications Co | Great Sun vs. Anhui Deli Household |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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