Correlation Between State Grid and Shanghai Lingyun
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By analyzing existing cross correlation between State Grid InformationCommunication and Shanghai Lingyun Industries, you can compare the effects of market volatilities on State Grid and Shanghai Lingyun 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 Lingyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Shanghai Lingyun.
Diversification Opportunities for State Grid and Shanghai Lingyun
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Shanghai is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Shanghai Lingyun Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Lingyun Ind 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 Lingyun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Lingyun Ind has no effect on the direction of State Grid i.e., State Grid and Shanghai Lingyun go up and down completely randomly.
Pair Corralation between State Grid and Shanghai Lingyun
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Shanghai Lingyun. But the stock apears to be less risky and, when comparing its historical volatility, State Grid InformationCommunication is 1.15 times less risky than Shanghai Lingyun. The stock trades about -0.15 of its potential returns per unit of risk. The Shanghai Lingyun Industries is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 40.00 in Shanghai Lingyun Industries on September 13, 2024 and sell it today you would lose (1.00) from holding Shanghai Lingyun Industries or give up 2.5% 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. Shanghai Lingyun Industries
Performance |
| Timeline |
| State Grid Informati |
| Shanghai Lingyun Ind |
State Grid and Shanghai Lingyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Shanghai Lingyun
The main advantage of trading using opposite State Grid and Shanghai Lingyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid position performs unexpectedly, Shanghai Lingyun 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 Lingyun will offset losses from the drop in Shanghai Lingyun's long position.| State Grid vs. Industrial and Commercial | State Grid vs. Agricultural Bank of | State Grid vs. China Construction Bank | State Grid vs. Bank of China |
| Shanghai Lingyun vs. Industrial Bank Co | Shanghai Lingyun vs. Sanbo Hospital Management | Shanghai Lingyun vs. Peoples Insurance of | Shanghai Lingyun vs. Guosheng Financial Holding |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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