Correlation Between State Grid and Changchun BCHT
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Grid InformationCommunication and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on State Grid and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Changchun BCHT.
Diversification Opportunities for State Grid and Changchun BCHT
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Changchun is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of State Grid i.e., State Grid and Changchun BCHT go up and down completely randomly.
Pair Corralation between State Grid and Changchun BCHT
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.36 times more return on investment than Changchun BCHT. However, State Grid is 1.36 times more volatile than Changchun BCHT Biotechnology. It trades about 0.0 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.13 per unit of risk. If you would invest 1,816 in State Grid InformationCommunication on October 14, 2024 and sell it today you would lose (59.00) from holding State Grid InformationCommunication or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| State Grid Informati |
| Changchun BCHT Biote |
State Grid and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Changchun BCHT
The main advantage of trading using opposite State Grid and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.| State Grid vs. Shenyang Chemical Industry | State Grid vs. Huasi Agricultural Development | State Grid vs. Dosilicon Co | State Grid vs. Sinomach General Machinery |
| Changchun BCHT vs. Qingdao Foods Co | Changchun BCHT vs. Aba Chemicals Corp | Changchun BCHT vs. State Grid InformationCommunication | Changchun BCHT vs. Dymatic Chemicals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |