Correlation Between Guangxi Wuzhou and State Grid
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and State Grid InformationCommunication, you can compare the effects of market volatilities on Guangxi Wuzhou and State Grid 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 Guangxi Wuzhou with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and State Grid.
Diversification Opportunities for Guangxi Wuzhou and State Grid
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangxi and State is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati and Guangxi Wuzhou 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 Guangxi Wuzhou Communications are associated (or correlated) with State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and State Grid go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and State Grid
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.88 times more return on investment than State Grid. However, Guangxi Wuzhou Communications is 1.14 times less risky than State Grid. It trades about 0.03 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.02 per unit of risk. If you would invest 346.00 in Guangxi Wuzhou Communications on October 29, 2024 and sell it today you would earn a total of 88.00 from holding Guangxi Wuzhou Communications or generate 25.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. State Grid InformationCommunic
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| State Grid Informati |
Guangxi Wuzhou and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and State Grid
The main advantage of trading using opposite Guangxi Wuzhou and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Guangxi Wuzhou vs. Cabio Biotech Wuhan | Guangxi Wuzhou vs. Holitech Technology Co | Guangxi Wuzhou vs. Sharetronic Data Technology | Guangxi Wuzhou vs. Lander Sports Development |
| State Grid vs. Industrial and Commercial | State Grid vs. Kweichow Moutai Co | State Grid vs. Agricultural Bank of | State Grid vs. China Mobile Limited |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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