Correlation Between State Grid and Shanghai Jin
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By analyzing existing cross correlation between State Grid InformationCommunication and Shanghai Jin Jiang, you can compare the effects of market volatilities on State Grid and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Shanghai Jin.
Diversification Opportunities for State Grid and Shanghai Jin
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Shanghai is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of State Grid i.e., State Grid and Shanghai Jin go up and down completely randomly.
Pair Corralation between State Grid and Shanghai Jin
Assuming the 90 days trading horizon State Grid is expected to generate 1.15 times less return on investment than Shanghai Jin. In addition to that, State Grid is 1.09 times more volatile than Shanghai Jin Jiang. It trades about 0.08 of its total potential returns per unit of risk. Shanghai Jin Jiang is currently generating about 0.11 per unit of volatility. If you would invest 47.00 in Shanghai Jin Jiang on November 28, 2024 and sell it today you would earn a total of 16.00 from holding Shanghai Jin Jiang or generate 34.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.13% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Shanghai Jin Jiang
Performance |
| Timeline |
| State Grid Informati |
| Shanghai Jin Jiang |
State Grid and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Shanghai Jin
The main advantage of trading using opposite State Grid and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.| State Grid vs. Cultural Investment Holdings | State Grid vs. Suzhou Weizhixiang Food | State Grid vs. Ligao Foods CoLtd | State Grid vs. Jiahe Foods Industry |
| Shanghai Jin vs. China Eastern Airlines | Shanghai Jin vs. Wangneng Environment Co | Shanghai Jin vs. Changjiang Jinggong Steel | Shanghai Jin vs. Aofu Environmental Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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