Correlation Between State Grid and Jiangsu Xinri
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By analyzing existing cross correlation between State Grid InformationCommunication and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on State Grid and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Jiangsu Xinri.
Diversification Opportunities for State Grid and Jiangsu Xinri
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Jiangsu is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of State Grid i.e., State Grid and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between State Grid and Jiangsu Xinri
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.77 times more return on investment than Jiangsu Xinri. However, State Grid is 1.77 times more volatile than Jiangsu Xinri E Vehicle. It trades about 0.11 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.1 per unit of risk. If you would invest 2,040 in State Grid InformationCommunication on September 1, 2024 and sell it today you would earn a total of 182.00 from holding State Grid InformationCommunication or generate 8.92% 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. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| State Grid Informati |
| Jiangsu Xinri E |
State Grid and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Jiangsu Xinri
The main advantage of trading using opposite State Grid and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| State Grid vs. Guangzhou KingTeller Technology | State Grid vs. Aofu Environmental Technology | State Grid vs. Guangdong Liantai Environmental | State Grid vs. Hubei Forbon Technology |
| Jiangsu Xinri vs. Dawning Information Industry | Jiangsu Xinri vs. Ye Chiu Metal | Jiangsu Xinri vs. State Grid InformationCommunication | Jiangsu Xinri vs. Offshore Oil Engineering |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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