Correlation Between Shanghai Shibei and State Grid
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By analyzing existing cross correlation between Shanghai Shibei Hi Tech and State Grid InformationCommunication, you can compare the effects of market volatilities on Shanghai Shibei 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 Shanghai Shibei with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shibei and State Grid.
Diversification Opportunities for Shanghai Shibei and State Grid
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and State is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shibei Hi Tech 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 Shanghai Shibei 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 Shanghai Shibei Hi Tech 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 Shanghai Shibei i.e., Shanghai Shibei and State Grid go up and down completely randomly.
Pair Corralation between Shanghai Shibei and State Grid
Assuming the 90 days trading horizon Shanghai Shibei Hi Tech is expected to under-perform the State Grid. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Shibei Hi Tech is 1.04 times less risky than State Grid. The stock trades about 0.0 of its potential returns per unit of risk. The State Grid InformationCommunication is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,700 in State Grid InformationCommunication on October 13, 2024 and sell it today you would earn a total of 57.00 from holding State Grid InformationCommunication or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shibei Hi Tech vs. State Grid InformationCommunic
Performance |
| Timeline |
| Shanghai Shibei Hi |
| State Grid Informati |
Shanghai Shibei and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shibei and State Grid
The main advantage of trading using opposite Shanghai Shibei and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shibei 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.| Shanghai Shibei vs. HeBei Jinniu Chemical | Shanghai Shibei vs. Liuzhou Chemical Industry | Shanghai Shibei vs. Sportsoul Co Ltd | Shanghai Shibei vs. Ciwen Media Co |
| State Grid vs. Dymatic Chemicals | State Grid vs. Shanghai Shibei Hi Tech | State Grid vs. FSPG Hi Tech Co | State Grid vs. Guangzhou Jointas Chemical |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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