Correlation Between State Grid and Chison Medical
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By analyzing existing cross correlation between State Grid InformationCommunication and Chison Medical Technologies, you can compare the effects of market volatilities on State Grid and Chison Medical 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 Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Chison Medical.
Diversification Opportunities for State Grid and Chison Medical
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Chison is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn 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 Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of State Grid i.e., State Grid and Chison Medical go up and down completely randomly.
Pair Corralation between State Grid and Chison Medical
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.96 times more return on investment than Chison Medical. However, State Grid InformationCommunication is 1.04 times less risky than Chison Medical. It trades about -0.26 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about -0.32 per unit of risk. If you would invest 2,013 in State Grid InformationCommunication on October 17, 2024 and sell it today you would lose (207.00) from holding State Grid InformationCommunication or give up 10.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Chison Medical Technologies
Performance |
| Timeline |
| State Grid Informati |
| Chison Medical Techn |
State Grid and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Chison Medical
The main advantage of trading using opposite State Grid and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Chison Medical 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 Chison Medical will offset losses from the drop in Chison Medical's long position.| State Grid vs. Anhui Transport Consulting | State Grid vs. China Aluminum International | State Grid vs. Rising Nonferrous Metals | State Grid vs. Shanghai Yanpu Metal |
| Chison Medical vs. State Grid InformationCommunication | Chison Medical vs. Changjiang Publishing Media | Chison Medical vs. Guangzhou Jinyi Media | Chison Medical vs. Tongyu Communication |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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