Correlation Between State Grid and Shenzhen Transsion
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By analyzing existing cross correlation between State Grid InformationCommunication and Shenzhen Transsion Holdings, you can compare the effects of market volatilities on State Grid and Shenzhen Transsion 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 Shenzhen Transsion. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Shenzhen Transsion.
Diversification Opportunities for State Grid and Shenzhen Transsion
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Shenzhen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Shenzhen Transsion Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Transsion 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 Shenzhen Transsion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Transsion has no effect on the direction of State Grid i.e., State Grid and Shenzhen Transsion go up and down completely randomly.
Pair Corralation between State Grid and Shenzhen Transsion
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.73 times more return on investment than Shenzhen Transsion. However, State Grid InformationCommunication is 1.37 times less risky than Shenzhen Transsion. It trades about 0.05 of its potential returns per unit of risk. Shenzhen Transsion Holdings is currently generating about 0.03 per unit of risk. If you would invest 1,409 in State Grid InformationCommunication on September 12, 2024 and sell it today you would earn a total of 839.00 from holding State Grid InformationCommunication or generate 59.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Shenzhen Transsion Holdings
Performance |
| Timeline |
| State Grid Informati |
| Shenzhen Transsion |
State Grid and Shenzhen Transsion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Shenzhen Transsion
The main advantage of trading using opposite State Grid and Shenzhen Transsion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Shenzhen Transsion 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 Shenzhen Transsion will offset losses from the drop in Shenzhen Transsion's long position.| State Grid vs. Gansu Jiu Steel | State Grid vs. Shandong Mining Machinery | State Grid vs. Aba Chemicals Corp | State Grid vs. BlueFocus Communication Group |
| Shenzhen Transsion vs. State Grid InformationCommunication | Shenzhen Transsion vs. Saurer Intelligent Technology | Shenzhen Transsion vs. Changchun UP Optotech | Shenzhen Transsion vs. Jiangxi Hengda Hi Tech |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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