Correlation Between State Grid and Suzhou Douson
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Grid InformationCommunication and Suzhou Douson Drilling, you can compare the effects of market volatilities on State Grid and Suzhou Douson 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 Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Suzhou Douson.
Diversification Opportunities for State Grid and Suzhou Douson
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between State and Suzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling 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 Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of State Grid i.e., State Grid and Suzhou Douson go up and down completely randomly.
Pair Corralation between State Grid and Suzhou Douson
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.88 times more return on investment than Suzhou Douson. However, State Grid InformationCommunication is 1.13 times less risky than Suzhou Douson. It trades about 0.03 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about -0.01 per unit of risk. If you would invest 1,671 in State Grid InformationCommunication on August 25, 2024 and sell it today you would earn a total of 411.00 from holding State Grid InformationCommunication or generate 24.6% 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. Suzhou Douson Drilling
Performance |
| Timeline |
| State Grid Informati |
| Suzhou Douson Drilling |
State Grid and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Suzhou Douson
The main advantage of trading using opposite State Grid and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson'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 |
| Suzhou Douson vs. Guangzhou Jinyi Media | Suzhou Douson vs. Zhejiang Daily Media | Suzhou Douson vs. Qinghaihuading Industrial Co | Suzhou Douson vs. Chengtun Mining Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |