Correlation Between State Grid and Eastroc Beverage
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By analyzing existing cross correlation between State Grid InformationCommunication and Eastroc Beverage Group, you can compare the effects of market volatilities on State Grid and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Eastroc Beverage.
Diversification Opportunities for State Grid and Eastroc Beverage
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Eastroc is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of State Grid i.e., State Grid and Eastroc Beverage go up and down completely randomly.
Pair Corralation between State Grid and Eastroc Beverage
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 2.66 times more return on investment than Eastroc Beverage. However, State Grid is 2.66 times more volatile than Eastroc Beverage Group. It trades about 0.1 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.03 per unit of risk. If you would invest 2,077 in State Grid InformationCommunication on September 4, 2024 and sell it today you would earn a total of 153.00 from holding State Grid InformationCommunication or generate 7.37% 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. Eastroc Beverage Group
Performance |
| Timeline |
| State Grid Informati |
| Eastroc Beverage |
State Grid and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Eastroc Beverage
The main advantage of trading using opposite State Grid and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage'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 |
| Eastroc Beverage vs. Shaanxi Energy Investment | Eastroc Beverage vs. China Express Airlines | Eastroc Beverage vs. Wuhan Hvsen Biotechnology | Eastroc Beverage vs. Ningbo MedicalSystem Biotechnology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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