Correlation Between State Grid and Xinya Electronic
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By analyzing existing cross correlation between State Grid InformationCommunication and Xinya Electronic Co, you can compare the effects of market volatilities on State Grid and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Xinya Electronic.
Diversification Opportunities for State Grid and Xinya Electronic
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between State and Xinya is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of State Grid i.e., State Grid and Xinya Electronic go up and down completely randomly.
Pair Corralation between State Grid and Xinya Electronic
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, State Grid InformationCommunication is 2.94 times less risky than Xinya Electronic. The stock trades about -0.43 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,472 in Xinya Electronic Co on October 16, 2024 and sell it today you would lose (102.00) from holding Xinya Electronic Co or give up 6.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Xinya Electronic Co
Performance |
| Timeline |
| State Grid Informati |
| Xinya Electronic |
State Grid and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Xinya Electronic
The main advantage of trading using opposite State Grid and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| State Grid vs. Guizhou Chanhen Chemical | State Grid vs. Telling Telecommunication Holding | State Grid vs. Hengli Petrochemical Co | State Grid vs. Xiangyang Automobile Bearing |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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