Correlation Between State Grid and Zoy Home
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By analyzing existing cross correlation between State Grid InformationCommunication and Zoy Home Furnishing, you can compare the effects of market volatilities on State Grid and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Zoy Home.
Diversification Opportunities for State Grid and Zoy Home
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Zoy is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of State Grid i.e., State Grid and Zoy Home go up and down completely randomly.
Pair Corralation between State Grid and Zoy Home
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.76 times more return on investment than Zoy Home. However, State Grid InformationCommunication is 1.31 times less risky than Zoy Home. It trades about 0.02 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.0 per unit of risk. If you would invest 1,849 in State Grid InformationCommunication on August 29, 2024 and sell it today you would earn a total of 195.00 from holding State Grid InformationCommunication or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Zoy Home Furnishing
Performance |
| Timeline |
| State Grid Informati |
| Zoy Home Furnishing |
State Grid and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Zoy Home
The main advantage of trading using opposite State Grid and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| State Grid vs. Kweichow Moutai Co | State Grid vs. NAURA Technology Group | State Grid vs. APT Medical | State Grid vs. BYD Co Ltd |
| Zoy Home vs. Shaanxi Broadcast TV | Zoy Home vs. Xinjiang Beixin RoadBridge | Zoy Home vs. Hunan TV Broadcast | Zoy Home vs. Longjian Road Bridge |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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